Court classifies 'soya nuggets' under Residuary Item, 8% tax rate, not dry vegetable. Petition dismissed.

The court ruled that 'soya nuggets' should be classified under the Residuary Item in Schedule III of the Assam General Sales Tax Act, 1993, attracting a tax rate of 8%. The court found that although soya nuggets are a vegetarian food item, they do not qualify as a dry vegetable under Item 1(b) of Schedule II. The petition was dismissed in favor of the revenue's classification, and the interim order was vacated without costs awarded.

---

---

Issues:
Classification of 'soyabari' or 'soya nuggets' under Assam General Sales Tax Act, 1993 - Whether falls within Item 1(b) of Schedule II or under Item 2 of Schedule III.

Analysis:
1. The main issue in this case is the classification of 'soya nuggets' under the Assam General Sales Tax Act, 1993. The petitioner argues that soya nuggets should be classified under Item 1(b) of Schedule II as a dry vegetable, attracting a tax rate of 4%. The petitioner contends that soya nuggets are understood as a dry vegetable by consumers and in trade. The petitioner relies on previous court decisions and the common parlance test to support their argument.

2. On the other hand, the respondents argue that soya nuggets do not meet the criteria to be classified as a dry vegetable under Item 1(b) of Schedule II. They assert that a dry vegetable must undergo specific processes to be classified as such, which soya nuggets do not. The respondents also argue that soya nuggets are not perceived as a dry vegetable by householders or vendors, but rather as a vegetarian food item.

3. The court considers the principles for determining the classification of a product for tax purposes. It is established that if a product is defined by the statute, that definition must be followed. In the absence of a specific definition, the common parlance test is applied. The court refers to previous Supreme Court decisions regarding the classification of items like betel leaves and sugarcane as vegetables based on common parlance understanding.

4. Applying the legal principles, the court finds that soya nuggets, although a vegetarian food item, do not qualify as a dry vegetable under Item 1(b) of Schedule II. Soya nuggets are not perceived as dry vegetables by consumers or vendors but rather as vegetarian food. Therefore, the court concludes that soya nuggets should be classified under the Residuary Item in Schedule III, attracting a tax rate of 8%.

5. Based on the above analysis, the court dismisses the writ petition, ruling in favor of the revenue's classification of soya nuggets under the Residuary Item in Schedule III. The interim order is vacated, and no costs are awarded in this matter.

---