Statutory definition of sugar prevails over trade parlance, making sugar candy exempt from sales tax.

Sugar candy (kallusakkare) falls within entry 31-B of the Fifth Schedule to the Karnataka Sales Tax Act, 1957 and is exempt from sales tax because the entry adopts the statutory definition of sugar. The relevant tariff definition treats sugar as any form containing more than 90 per cent sucrose, and the commodity's chemical composition satisfied that threshold. That statutory test prevails over a narrower commercial understanding, so classification turns on the incorporated definition rather than ordinary trade parlance. Prior authority treating similar sugar preparations as sugar for tax purposes supports the same classification.

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Issues: Whether sugar candy, locally known as kallusakkare, falls within entry 31-B of the Fifth Schedule to the Karnataka Sales Tax Act, 1957 and is therefore exempt from tax.

Analysis: The relevant scheme of the Act levies tax under section 5 and exempts goods specified in the Fifth Schedule under section 8. Entry 31-B covers sugar as described in the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957, and the interpretation of that Schedule is governed by the Central Excise Tariff Act, 1985. Chapter 17, Note 2 of the Tariff Act defines sugar as any form of sugar containing more than 90 per cent sucrose. Sugar candy was found to contain more than 90 per cent sucrose, and the statutory definition therefore governed over any narrower commercial understanding. The conclusion was also supported by prior authority treating similar sugar preparations as sugar for tax purposes.

Conclusion: Sugar candy is covered by entry 31-B of the Fifth Schedule to the Karnataka Sales Tax Act, 1957 and is exempt from levy of tax.

Ratio Decidendi: Where a taxing entry incorporates a statutory definition based on chemical composition, the commodity must be classified according to that definition and not according to ordinary commercial parlance.

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