1964 (10) TMI 81

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....s is a reference under section 44 of the Madhya Pradesh General Sales Tax Act, 1958, at the instance of the Commissioner of Sales Tax, Madhya Pradesh. The question which has been posed before us is"Whether cocoanuts, groundnut kernel and jira are oil-seeds coming under item No. 3 of Part II of Schedule I to the Act and, therefore, sales thereof are liable to tax at 0-0-3 in the rupee?" 2.. Duri....

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.... were oil-seeds inasmuch as they were seeds and oil could be extracted from them. 3.. In our judgment, the view taken by the Tribunal is not correct. The classes of goods mentioned in Part II of Schedule I of the Act are taxable at the rate of three pies in a rupee, and item No. 3 of this Part speaks of "oil-seeds subject to the provisions of entry 36 in Schedule II". Under entry 36 of Schedule....

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....ally used for extraction of oil. Any seed or fruit from which oil can be extracted but which is used more for other purposes than for extraction of oil does not fall within the popular meaning of the term "oil-seeds". Cocoanut is a fruit of coco-palm, and oil can be extracted from it. But it is not an oil-seed the principal use of which is extraction of oil. Cod-liver oil is extracted from the liv....

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....ion of oil. Judged by this test, it is difficult to hold that cocoanuts, groundnuts and jira fall within the meaning of the term "oil-seeds" as used in Part II of Schedule I of the Act. If these articles do not fall under item No. 3 of Part II of Schedule I, then they cannot be classified under any goods mentioned in Schedule I or Schedule II. Therefore, under section 5(1)(c) of the Act the sales ....