Notified goods under U.P. Sales Tax law did not include oil-cake, so consignment sales caused no section 4-B breach.

Oil-cake was not established as a notified commodity under section 4-B of the U.P. Sales Tax Act, so the statutory condition requiring sale of notified goods in Uttar Pradesh, in inter-State trade, or by export did not apply to it. On the stated facts, oil-cake was only a by-product of oil manufacture, while oil alone was the notified commodity covered by the recognition certificate. Consignment sales of oil-cakes therefore did not constitute a breach of section 4-B, and the assessee was not liable to forfeit concessional treatment or bear additional tax on purchase of oil-seeds.

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Issues: Whether oil-cake was notified goods for the purposes of section 4-B of the U.P. Sales Tax Act and whether consignment sales of oil-cakes amounted to contravention of that provision so as to attract tax on the purchase of oil-seeds.

Analysis: The commodity oil-cake was not shown to be covered by any notification or other provision as notified goods under section 4-B. The requirement that the notified goods should be sold in Uttar Pradesh, in the course of inter-State trade and commerce, or exported out of India, therefore did not apply to oil-cake. On the facts, oil-cake was only a by-product of the manufacture of oil, and oil alone was the notified commodity for which the recognition certificate had been obtained. The making of consignment sales of oil-cakes did not amount to a breach of section 4-B.

Conclusion: The assessee was not liable to forfeit the concessional treatment or pay additional tax on the purchase of oil-seeds on account of sales of oil-cakes. The answer was in favour of the assessee.

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