Classification of soyabean as a cereal upheld for sales tax purposes under the relevant Schedule II entry.

For classification under the sales tax entry, "cereal" was construed to mean any grain used for food, and soyabean, being used as food, was treated as falling within that expression. The Court followed its earlier interpretation and found no substantial basis to depart from it; the reference to section 14 of the Central Sales Tax Act did not change the result on the facts. Soyabean was therefore covered by the relevant Schedule II entry and taxable at 3 per cent.

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Issues: Whether soyabean falls within the expression "cereal" in entry No. 1(ii), Part V of Schedule II to the Madhya Pradesh General Sales Tax Act, 1958, and is therefore taxable at 3 per cent.

Analysis: The Court followed its earlier decision holding that, for the purpose of the relevant entry, the expression "cereal" means any grain used for food. On that approach, soyabean, being used for food, was treated as falling within the entry. The Court found no substantial basis to take a different view and accepted that the reference to section 14 of the Central Sales Tax Act did not alter that conclusion on the facts.

Conclusion: Soyabean is covered by the relevant entry in Schedule II and is liable to tax at the rate of 3 per cent.

Ratio Decidendi: For classification under the sales tax entry, an edible grain may be treated as a cereal where the entry is construed to include grains used for food.

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