TaxTMI 
TaxTMI 
1971 (1) TMI 103
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....ther "guar giri" or "guar meal" produced by the petitioners is assessable to sales tax under the Punjab General Sales Tax Act, 1948 (hereinafter referred to as the Act). The petitioners buy guar in the form of grain (cyamopsis peoralicides) and by a manufacturing process in their factories separate the outer skin or husk from the kernel, which is also called "middling", and is commercially known as "guar meal". Gum is manufactured from the outer skin of husk which is exported to the United States of America, while the inner portion called "guar meal" is used as a fodder for feeding animals in India on account of its high protein content. This assertion of the petitioners about the use of the guar meal has not been denied in the written stat....
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....did not contain "guara and its flour". "Guara and its flour" was inserted as item 13-A in Schedule 'B' to the Act by the East Punjab General Sales Tax (Amendment) Ordinance, 1949, which was promulgated on 14th April, 1949, and was published in the East Punjab Gazette Extraordinary dated 16th April, 1949. Thus, when the Act came into force on 1st May, 1949, "guara and its flour" was included in Schedule 'B' to the Act amongst foodgrains and pulses, from which the intention of the Legislature seems to be evident that "guara and its flour" was considered to be foodgrains. At that time fodder did not find place in Schedule 'B' to the Act, which relates to goods which are exempt from the payment of sales tax. This Schedule is prepared under sect....
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....x on "guar meal" produced by the petitioners at the rate of 75 naye paise per hundred rupees holding that it was "guara flour" which was not covered by the item relating to fodder. The submission on behalf of the respondents is that because the items "guara and its flour" and "fodder of every type (dry or green)" co-existed in Schedule 'B' to the Act for three years from 1955 to 1958, it has to be assumed that the Legislature did not consider "guara and its flour" as a fodder, otherwise there was no necessity of mentioning this item separately if it was included in the item relating to fodder. It is not possible to accept the submission for the reason that guara is not only fodder but has other uses also. Guara or guar in the grain form ....
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....bstance is extracted from guara by a manufacturing process and, therefore, cannot be treated as guara, which means the whole grain and not every part of it, into which it is split, or every product made therefrom. That is why "its flour" is also mentioned. The Assessing Authority has held that "guar giri" or "guar meal" is the same thing as "guar flour". This view of the Assessing Authority is being challenged in these petitions. In Stroud's judicial Dictionary, Third Edition, under "flour" it is stated that "middlings" are wheat offal and not flour. In support of this view R. & W. Paul Ltd. v. Wheat Commissioner[1937] A.C. 139. is cited. In Aiyar's Law Lexicon of British India, 1940 Edition, at page 451, "flour" is defined as "the finely g....
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.... sales tax. I have already stated above that it has been asserted by the petitioners in the writ petitions and not denied in the written statements that the "guar giri" or "guar meal" produced by them is only used as a cattle feed and for no other purpose. This fact was also asserted before the Assessing Authority, and the Assessing Authority has not mentioned any other use of this substance. All that the Assessing Authority has held is that this substance is covered by the item "guara flour" which is incorrect as pointed out above. Their Lordships of the Supreme Court in Ramavatar Budhaiprasad v. The Assistant Sales Tax Officer, Akola, and Another[1961] 12 S.T.C. 286 (S.C.)., held that the words must be construed not in any technical sense....