TaxTMI 
TaxTMI 
1971 (4) TMI 91
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....eeds, etc., and selling the same after passing them through the process of parching, which business in common parlance is known as that of "bharbhoonja". The business is said to be in existence for the last about 150 years. On receipt of a complaint that the assessee was doing business in contravention of section 7, read with section 4(2) of the Bengal Finance (Sales Tax) Act, 1941, as extended to the Union Territory of Delhi, herein called the Act, an enquiry was instituted by the authorities in 1961. The business premises of the firm were visited but no books of account were found. A few purchase vouchers, however, were taken into possession. The assessee was required to submit details of the purchases made by the firm from other dealers;....
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....r separate appeals were filed by the assessee for the four assessment years. The Appellate Assistant Commissioner of Sales Tax partially accepted three of the appeals to the extent that the taxable turnover for the years 1958-59 and 1959-60 was reduced to Rs. 16,000 for each year, while in respect of the assessment year 1960-61 it was reduced to Rs. 19,000. The appeal in respect of the assessment year 1961-62 was dismissed. The revision petitions filed on behalf of the assessee were dismissed by the Commissioner of Sales Tax. The second revision petitions before the Additional District Judge, Delhi, met the same fate. The assessee then applied to the Lt. Governor of the Union Territory of Delhi under section 21(1) of the Act, with a prayer ....
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....in the Second Schedule. In the said schedule of "exempted goods", item No. 1 reads: "(1) All cereals and pulses including all forms of rice (except when sold in sealed containers)." The word "cereal" denotes grain, used as food, such as wheat, rice, barley, etc. One of its meanings as given in Chambers's Twentieth Century Dictionary is: "a food prepared from such grain, especially a breakfast food easily got ready". It is a matter of common knowledge that easily prepared and ready to serve breakfast foods are made by subjecting corn, grain or rice to some process of conditioning, so that they become capable of being consumed instantaneously with milk or cream, like corn flakes, rice flakes, oatmeal, etc., which are displayed on a groc....
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....e which has been amended from time to time. Original entry No. 21 exempted "raw cotton". Entry No. 29 originally was "raw hides and skins". Item No. 43 which has now been deleted, exempted "raw wool". But entry No. 1 has remained unamended so far. The word "raw" is completely missing from this entry and the exemption is given, on the other hand, to "all cereals and pulses" and which is said to include "all forms of rice". It would be further noticed that the same cereals and pulses including all forms of rice are not exempt from tax "when sold in sealed containers". The intention is not to extend the exemption to sophisticated breakfast foods sold in such containers. The exemption is limited to such articles when sold, without being seal....
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....-solid condition, thereby resulting in a change in its shape. In Ramavatar Budhaiprasad v. The Assistant Sales Tax Officer, Akola, and Another[1961] 12 S.T.C. 286 (S.C.)., the Supreme Court was considering the word "vegetables" in item 6 of Schedule II of the C.P. and Berar Sales Tax Act, 1947. It was held that the word must be construed not in any technical sense nor from the botanical point of view but as understood in common parlance. It was, therefore, to be understood as denoting class of "vegetables" which are grown in a kitchen garden or in a farm and are used for the table. Betel leaves were held to be not vegetables. In Yamsani Sudarsanam v. The State of Andhra Pradesh[1962] 13 S.T.C. 743., the High Court of Andhra Pradesh was of t....
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....e arhar dal purchased by the dal mills. In the case before us, parched gram or parched dal in common parlance is still known as gram or dal. A customer going to the assessee when asking for "chana" or "dal" could be understood to be asking for parched chana or parched dal as these words in their popular sense include gram or dal even when parched. It cannot be said that the same are not exempt merely because they have been passed through a process of parching. Likewise, rice in all its forms is included in the term "cereal"; and in common parlance, corn, rice or grain in parched form are referred to as "cereals". In view of the above, we are of the view that parched rice, gram or dal continue to remain cereals within the meaning of those....