Sugar-candy treated as a taxable sugar preparation, not exempt sugar, under the Karnataka Sales Tax framework.

Sugar-candy is commercially distinct from sugar and, under the common parlance test, is properly classified as a sugar preparation rather than sugar itself. Where the Karnataka Sales Tax Act separately taxes "sugar and sugar preparation" and the exemption entry is confined to "sugar" as described in the connected excise schedule, the exemption does not extend to confectionery-like products outside that description. On that basis, sugar-candy falls within the taxable net under item No. 18A of Part S of the Second Schedule and is not covered by entry 31-B of the Fifth Schedule.

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Issues: Whether sugar-candy is exigible to sales tax under item No. 18A of Part S of the Second Schedule to the Karnataka Sales Tax Act, 1957, or exempt as "sugar" under entry 31-B of the Fifth Schedule to the Act.

Analysis: The charging provision and the single-point levy under section 5 and section 5(3) of the Karnataka Sales Tax Act, 1957, were read with item No. 18A of Part S of the Second Schedule, which specifically brought "sugar and sugar preparation" within the taxable net. Entry 31-B of the Fifth Schedule granted exemption to "sugar" as described in the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957, but that exemption did not extend to confectionery-like products excluded by the statutory description. Applying the common parlance approach, the Court held that sugar-candy is commercially distinct from sugar, is produced by a different process, and is properly characterised as a sugar preparation. Since sugar-candy does not fall within the exempted description of sugar in the Fifth Schedule, the legislative scheme permitted its taxation.

Conclusion: Sugar-candy is not exempt under entry 31-B of the Fifth Schedule and is liable to sales tax under item No. 18A of Part S of the Second Schedule, in favour of Revenue.

Ratio Decidendi: Where a taxing statute separately refers to sugar and sugar preparations, and the exemption entry is confined to sugar as specifically described in the connected excise schedule, a commercially distinct sugar preparation such as sugar-candy does not qualify for exemption merely because it is made from sugar.

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