2009 (1) TMI 834

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....d taste, should fall within the entry 35B of Schedule A to the West Bengal Value Added Tax Act, 2003 (in short, "the VAT Act"). In terms of the said entry, no tax is leviable on sale of seeds of all varieties other than those specified elsewhere in Schedule A to the VAT Act or alternatively whether it will be treated as an item falling under Schedule CA to the VAT Act as residual entry on which tax would be leviable at 12.5 per cent. Sri S.K. Chakrabarty, learned Senior Advocate, appearing along with Sri D.B. Thakur, Advocate, and Sri P. Gupta, Advocate, on behalf of the petitioner, submitted that the item in question is covered by entry 35B of Schedule A to the Act. In the said entry, barring seeds specified elsewhere in any Sch....

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....e seeds having germination capacity would only qualify for being treated as seeds as per entry against item No. 35B of Schedule A to the VAT Act. After de-husking, seeds lose their germination capacity. It was also submitted by him that de-husked water-melon seeds are not put to use for agricultural or horticultural purposes. Such seeds are used for enriching the taste and flavour of cooked items. In the circumstances, it should be treated as an item falling under Schedule CA to the VAT Act. We have heard both the sides. The learned Senior Advocate contended that water-melon seeds whether husked or de-husked should be treated as seeds for the purpose of treating as an item coming within the purview of entry made against serial No. 35B of S....

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....e seeds lose their germination capacity because of natural decay but even in these cases, the item may be sold as seed and may be accepted as seed without knowing that those had lost germinating capacity. It would be worthwhile to mention here that such decay is not due to passing these seeds through a conscious process for making them usable for a distinct purpose other than germinating for agricultural or horticultural purposes. However, for coming to the final conclusion as to whether the item in question is covered by entry 35B of Schedule A to the VAT Act, it appeared to us that the question raised by the petitioner requires to be further considered on obtaining experts' opinion. Samples of the seeds being sold by the petitioner w....