Incorporated statutory definitions control tax exemptions, and imported sugar qualified for exemption under the Kerala sales tax law.

Imported sugar fell within the exemption under Entry 5 of Schedule III to the Kerala General Sales Tax Act, 1963 because the statute incorporated the definition of sugar from the First Schedule to the Central Excises and Salt Act, 1944 by reference. That incorporated definition had to be applied on its own terms, and could not be narrowed by importing a limitation that excise goods under the constitutional entry are confined to goods manufactured or produced in India. The exemption therefore extended to all sugar satisfying the statutory definition, whether imported or domestically produced.

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Issues: Whether imported sugar fell within the exemption for sugar under Entry 5 of Schedule III to the Kerala General Sales Tax Act, 1963, by reason of the definition of sugar in the First Schedule to the Central Excises and Salt Act, 1944.

Analysis: Entry 5 of Schedule III exempted sugar as defined in Item No. 1 of the First Schedule to the Central Excises and Salt Act, 1944. That definition was incorporated into the sales tax statute by reference and had to be read as it stood. The argument that the excise entry should be confined to goods manufactured or produced in India, because excise duties under Entry 84 of List I of the Seventh Schedule to the Constitution apply only to goods manufactured or produced in India, was rejected. Once the definition was incorporated, the exemption covered all sugar satisfying the statutory definition, regardless of whether it was imported or domestically produced.

Conclusion: Imported sugar was exempt from tax under the Kerala General Sales Tax Act, 1963 if it satisfied the incorporated definition of sugar.

Ratio Decidendi: Where a taxing statute incorporates a definition from another enactment by reference, the incorporated definition must be applied according to its own terms and cannot be restricted by importing limitations from a different constitutional or statutory context unless the legislature has so provided.

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