Declared goods treatment for watery coconut limits State sales tax where only tender coconuts are excluded.

Watery coconut falls within the declared goods entry for coconut in section 14(vi)(viii) of the Central Sales Tax Act, 1956 because the entry excludes only tender coconuts. The HC treated watery coconuts as a distinct and recognised variety, not synonymous with tender coconuts, and therefore held that they remain covered by the statutory declaration for coconut. Once so covered, section 15 limits the State sales tax rate on such goods. The assessee was entitled to the benefit of the declared goods restriction, and the higher tax levy could not stand.

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Issues: Whether watery coconut is covered by the entry relating to coconut in section 14(vi)(viii) of the Central Sales Tax Act, 1956 so as to be treated as declared goods, and whether the State sales tax on its sale could exceed 4 per cent under section 15 of that Act.

Analysis: The entry in section 14(vi)(viii) treats coconut as declared goods and excludes only tender coconuts. The judgment distinguished watery coconuts from tender coconuts, noting that watery coconuts are a separate and recognised variety and are not the same as tender coconuts. The reasoning also relied on prior judicial recognition that watery coconuts are not tender coconuts and on the legislative choice to exclude only tender coconuts while including coconut in the declared goods list. Once coconut falls within section 14, section 15 restricts the State tax rate on such goods to 4 per cent.

Conclusion: Watery coconut is declared goods within section 14(vi)(viii) of the Central Sales Tax Act, 1956 and the tax thereon could not be levied at 8 per cent; the assessee succeeded on this issue.

Ratio Decidendi: Where a statutory entry includes coconut and expressly excludes only tender coconuts, watery coconut remains within the declared goods entry and State taxation is subject to the rate restriction imposed by section 15.

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