1975 (11) TMI 155

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....undnut was subjected to multi-point tax at 2.5 per cent by the assessing officer. This order was confirmed by the Appellate Assistant Commissioner. But, on further appeal, the Tribunal was of the view that even after frying, the characteristics of groundnut kernel were not lost and that, therefore, the turnover will have to be deleted from the assessment. Questioning the view of the Tribunal, the revenue has filed this revision petition. Item 6 of the Second Schedule to the Tamil Nadu General Sales Tax Act, as it stood in the relevant assessment year 1966-67, reads as follows:   Per cent. 6 (a) Oil-seeds, other than At the point 3 cardamom and groundof first sale nut, that is to say, seeds in the State. yielding non-volatil....

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....f the Central Sales Tax Act. Section 14 enumerates goods which are of special importance in inter-State trade or commerce. Among these declared goods covered under section 14(vi) are: "Oil-seeds, that is to say, seeds yielding non-volatile oils used for human consumption, or in industry, or in the manufacture of varnishes, soaps and the like, or in lubrication, and volatile oils used chiefly in medicines, perfumes, cosmetics and the like." Thus, oil-seeds of the description referred to in section 14(vi) of the Central Sales Tax Act could be taxed under section 15 of the Central Sales Tax Act at one stage either at purchase or sale point and not at more than one stage and at a rate not exceeding 3 per cent. It is only those declared go....

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....e property of a seed. There may be many kernels, which may not be seeds and there may be many seeds which may not be kernels. What is important to note in interpreting the scope of the entry is whether the seed, yielding oil, can be looked upon as having the property of a seed. If it has lost the property, it can no longer be considered to be an oil-seed. We are of the view that the word 'seed' must retain its meaning in the phrase 'oil-seed' and it is an article, which, while being a seed, is capable also of yielding oil that can well be described as oil-seed." The same test was laid down in the Supreme Court in Avadh Sugar Mills Ltd. v. Sales Tax Officer[1973] 31 S.T.C. 469 (S.C.)., which was also concerned with a case of groundnut. Co....