2004 (4) TMI 547

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....r, Sales Tax, U.P. and partly allow the appeal of the assessee by holding that the salted preparation of maida termed as kachri by the assessee was covered by Notification No. ST-2-5788 dated September 7, 1981 and, therefore, exempt from tax though kachri has been held to be a preparation from rice by the honourable High Court in the case of Kasturi Lal & Sons v. Commissioner of Sales Tax 1987 UPTC 1298 whereas in the present case the impugned commodity was prepared out of maida which is altogether different commodity like potato chips? " 2.. Heard the counsel for the parties and perused the record. In both these revisions the dispute is whether the commodity which is called "kachri" by the dealer-opposite party is, in fact, a "kachri" w....

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....ation was applied for kachri and not only for "namkeen". This order is under challenge in the revisions. At this stage it is relevant to have the wordings of the Notification No. 5788 dated September 7, 1981. "In exercise of the powers under clause (a) of section 4 of the U.P. Sales Tax Act, 1948 (U.P. Act No. XV of 1948), the Governor is pleased to order that, with effect from September 7, 1981, no tax under the said Act shall be payable on the sale or purchase of the following goods: 1.. Flowers, flower seeds, seedlings, plants and seeds of kakri, kheera, kharbooza and tarbooz. 2.. Sewaiyan, bari, mungauri, papar and kachri." 4.. The said notification has been issued under section 4(a) of the U.P. Sales Tax Act, 1948. This sec....

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....tion in question that "kachri" is preparation of rice. The relevant portion of the said judgment is quoted below: ".............Finding of the Tribunal is that 'kachri' is a preparation of rice. I quite agree with the Tribunal because in common parlance, 'kachri' is one which is prepared out of rice and, therefore, potato chips cannot be exempted even under notification dated September 7, 1981."   7. The court was examining the question as to whether potato chips can be included in the definition of "kachri" or not. It was answered that potato chips are not "kachri". In the case in hand the dealer-opposite party has submitted that since the produce in question is used after frying in oil, therefore, it is "kachri". If this reason....