1990 (11) TMI 400 - SC - VAT and Sales Tax

High Court rules brown coconuts not exempt from octroi, fall under separate category

The High Court dismissed the appeal challenging the levy of octroi on brown coconuts, ruling that they do not qualify as exempted green fruits but fall ... - Issues Involved: The issue involved in this case is the power to levy octroi on brown coconut (watery coconut) and whether it falls under the exempted green fruit category.Judgment Details:Issue 1: Power to Levy Octroi on Brown CoconutThe appellants challenged the levy of octroi on brown coconuts, contending that they are exempted green fruits under the octroi rules. The High Court dismissed the writ petition, ruling that brown coconuts do not qualify as exempted green fruits but fall under a general item in the rules. The appellants import and sell brown coconuts in Ahmedabad, where octroi was imposed at varying rates. The key contention was whether brown coconut is considered a green fruit under the rules.Issue 2: Interpretation of Rules and DefinitionsThe rules specify that articles carried into or out of octroi limits are liable to octroi unless exempted. Rule 4 lists exempted articles, including green fruits under item 10. The question arose whether brown coconut qualifies as a green fruit. The court examined definitions of 'green' and 'fruit' from dictionaries to determine the ordinary commercial understanding of these terms in the context of octroi regulations.Issue 3: Precedents and InterpretationThe court referred to previous judgments to analyze the classification of coconut products. It was established that watery coconut (brown coconut) is distinct from green fruits and dry fruits as per the rules. Various High Courts had previously considered coconut products in the context of sales tax laws, highlighting the commercial understanding of coconut as distinct from fruits or dry fruits.Conclusion:The court concluded that watery coconut (brown coconut) does not qualify as a green fruit or dry fruit under the rules. It was determined that brown coconut falls under a separate category and is exigible to octroi under item 55 of Rule 14. The appeal challenging the levy of octroi on brown coconut was dismissed, with costs awarded to the respondent. The court declined to make a reference to a larger bench due to the settled legal position on the matter.