Exemption for sugar products turns on essential character, and sugar globules remained covered despite their different form.

Sugar globules consisting of almost entirely sugar were treated as falling within the exemption entry for "sugar including khandsari and boora" because the essential character of the goods remained sugar. Prior authority on the meaning of sugar was applied to the effect that products containing more than 90% sucrose and no other mixed ingredients continue to be sugar, even if marketed in a different shape or form. The article or end use of the goods did not change their character, so the entry was construed broadly to cover the goods and the issue was answered in favour of the assessee.

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Issues: Whether sugar globules manufactured and sold by the dealer fall within entry 39 of Schedule B to the Haryana General Sales Tax Act, 1973 as "sugar including khandsari and boora".

Analysis: The relevant entry was construed in light of prior authority on the meaning of "sugar". The decisive consideration was that sugar globules were made of almost 100% sugar and therefore satisfied the accepted standard that products containing more than 90% sucrose and not mixed with other ingredients remain sugar, even if sold in a different form. The form or end use of the goods did not alter their essential character, and an illustrative exemption entry was read broadly enough to include such articles.

Conclusion: Sugar globules were held to be covered by entry 39 of Schedule B, and the question was answered in favour of the assessee and against the revenue.

Ratio Decidendi: Goods consisting substantially of sugar, with no other ingredient mixed in and retaining the essential character of sugar, fall within an exemption entry for sugar even if they are sold in a different shape or form.

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