1979 (7) TMI 221

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....70, 1970-71 and 1971-72 filed by the Commissioner of Sales Tax challenging the legality of the view taken by the Additional Judge (Revisions) that ice-cream is milk product. Section 4 of the U. P. Sales Tax Act exempts milk amongst other things from payment of tax. It also empowers the State Government to exempt any other goods by notification issued from time to time. In exercise of this power....

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....ty may, however, arise in items prepared from anything. For instance sweetmeat is not made out of milk but made from it. Whether such a commodity can also be said to be product? In a taxing statute it depends on the intention discerned from the language of the notification. A bare look at the notification leaves no scope for controversy that the expanse of the entry is very wide. By the first part....

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....otification exempts milk products which are not only produced out of milk but also from it. Having ascertained the intention of the notification it may now be examined if ice-cream can be considered to be milk product. The ingredients and process of manufacturing ice-cream is described in Encyclopaedia Britannica (Vol. 11, 1973 Edition) thus: "Ingredients.-...good-quality vanilla ice cream cont....

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....nuts or other special flavouring. The mix is pasteurized and homogenized and then cooled rapidly to not more than-40ºF."   The basic ingredients of ice-cream are milk and its products and the only process involved is cooling the mixture so that it becomes hard. As ice-cream is prepared from milk and contains nothing but milk it is milk product as described in the notification. Lassi i....