Sugar classification exemption upheld for patasa, harda and sakaria; actual duty payment proof not required from dealer.

Patasa, harda and sakaria were treated as forms of sugar for the purpose of the GST exemption entry, so they continued to qualify under entry 86 of Schedule I. The exemption depended on additional duty of excise under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 being leviable and not exempted, and the Court held that no further burden could be placed on the dealer to prove actual payment of that duty. The State's challenge therefore failed, and the Tribunal's view granting exemption remained undisturbed.

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Issues: Whether patasa, harda and sakaria fall within the sugar entry so as to qualify for exemption under entry 86 of Schedule I of the GST Act.

Analysis: The challenge was covered by the earlier decision of the Tribunal, which had been affirmed by the Division Bench in connected proceedings. The controlling reasoning was that patasa, harda and sakaria are forms of sugar for purposes of the relevant entry, and that the exemption depends on the levy and collection of additional duty of excise under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 not being exempted. Since the condition was satisfied and there was no basis to impose any further burden on the dealer to prove actual payment by it, the goods continued to fall within the exempted entry.

Conclusion: The issue was answered in favour of the assessee-side classification, and the State's challenge failed.

Final Conclusion: The petitions were dismissed, and the Tribunal's view granting exemption was left undisturbed.

Ratio Decidendi: Where the relevant exemption entry requires only that additional duty of excise be leviable and not exempted, the benefit cannot be denied by adding a further requirement that the dealer itself must have borne or proved actual payment of that duty.

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