1955 (7) TMI 10

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....sees are dealers in ground-nut oil and cake. They purchase ground-nut and ground-nut kernel and, after converting them into oil, sell it. During the year 1951-52, they pur- chased Rs. 16,41,542-1-9 worth of ground-nut and Rs. 5,87,049-7-9 worth of ground-nut kernel. The said turnover was assessed at the purchase point. The said assessment was confirmed by the Tribunal. The assessees question the v....

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....and cake.   "Rule 18(2): Every such manufacturer shall be entitled to a deduc- tion under clause (k) of sub-rule (1) of rule 5 equal to the value of the ground-nut and/or kernel purchased and converted by him into oil and cake provided that the amount for which the oil is sold is included in his turnover. Explanation: For the purpose of this sub-rule-(a) 143 lbs. of ground-nut shall be ....

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.... hensive term, which obviously takes in kernel. The word ground-nut is used to connote both the shell and the kernel within it. We cannot discover any reason nor is any suggested to us, why the rule should make a distinction between ground-nut and ground-nut kernel and why ground-nut should be taxed at the purchase point and ground-nut kernel at the sale point. So too, the ground on which rebate i....

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....er the word "cotton". This fact cannot, therefore, throw any light on the construction of rule 4(2)(a), for, as we have already stated, ground-nut takes in kernel also. Our conclusion is also in accord with the view expressed by a Division Bench of the Madras High Court in Radhakrishna Ground-nut Oil Mill v. State of Madras(1). Rajagopalan J., negativing a similar con- tention, says at page 551 as....