TaxTMI 
TaxTMI 
2003 (6) TMI 453
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....1999 the vehicle No. MP09KA/5968 was intercepted near Asansol and 231 bags of "makka poha" were seized on the ground that the contents of the bags were cornflakes of inferior quality coming under the entry No. 50 of Schedule IV to the Act, 1994. The case was heard on July 30, 1999 and penalty amounting to Rs. 64,680 was imposed for carrying the taxable goods without proper and valid waybills. 3.. Revision was preferred against the said order of penalty passed by the Commercial Taxes Officer, before the Assistant Commissioner and thereafter before the Deputy Commissioner. Both the revisional authorities confirmed the order of the learned Commercial Taxes Officer holding the goods as cornflakes of inferior quality. According to the ....
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....ld to be "rice" exempted under the provisions of the Andhra Pradesh Sales Tax Act, 1957. Attention was drawn also to paragraph 9 of the Trade Circular No. 2 of 2000 dated March 31, 2000 issued by the Directorate of Commercial Taxes, Government of West Bengal, where maize of all varieties were shown to be exempted from sales tax and subsequently was included in serial No. 235 of Schedule IV at the rate of 4 per cent tax. According to the learned lawyer, the impugned orders passed by the authorities therefore are illegal, unjustified and without proper application of mind, hence are liable to be set aside. 6.. The learned State Representative submits that "makka poha" cannot be cereals under the entry No. 14 of Schedule I. The Le....
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....not edible. Parched rice and puffed rice are edible but "rice" in entry No. 66 is wide enough to cover both forms of rice. 8.. In the present case also, there is no separate entry for maize and the maize reduced into edible form by heating or parching without any addition of different ingredients. Whereas the trade circular No. 2 of 2000 dated March 31, 2000 shows that prior to the date of publication maize products of all varieties were exempted from sales tax. Since maize was exempted from sales tax such exemption obviously used to be given as we find, accepting as cereals under item No. 14 of Schedule I. 9.. The question, therefore, arises if "makka poha" is the product totally different commercial commodity to be excluded from the....
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....ed legal principle relating to levying tax as we find, is that the identity of such goods if it is not changed by some processing it cannot be taxed again. In the instant case, the respondent accepted "makka poha" as inferior quality of cornflakes without denying the fact that such goods are the products of boiled maize without any further chemical changes like that of cornflakes. It was for the respondent to prove that the product had become a different commercial commodity after parching losing its identity of maize. The responsibility of proving such fact that "makka poha" is totally a different commodity lies upon the respondent. In a case of State of Kerala v. Namputhiris Pickle [2000] 117 STC 312 (SC) it was held that the chilli powde....