2011 (7) TMI 1081

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....sments reopening under the Karnataka Value Added Tax Act, 2003 and passed orders levying the tax at 12.5 per cent on the ground that garlic paste and ginger paste are not covered by entry No. 3 of the Third Schedule to the Karnataka Value Added Tax Act, 2003 as understood by the assessee. The products dealt with by the assessee are unscheduled goods and hence the applicable tax at 12.5 per cent was levied. Aggrieved by the same, an appeal was filed wherein the appellate authority set aside the assessments and held that ginger and garlic paste fall under entry No. 3 of the Third Schedule to the Act and consequently liable to tax at the rate of four per cent. The appellate authority observed with reference to entry Nos. 26 and 27 of the First....

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....e must be considered as understood in common parlance and it must be given a popular sense meaning and therefore held that green ginger is included within the meaning of word "vegetable". Further reliance is placed in the case of State of Orissa v. Bhagawandas Ashok Kumar reported in [1982] 51 STC 74 (Orissa) which held "that vegetables would no more include garlic is made clear by the Government notification. Having used a common-place term such as vegetable and then excluding certain named items form its fold is indicative of the fact that the State Government was of the view that the generic term Vegetables' would have included garlic. Therefore, the exception was provided. The exception covered items like lemon and chilli which the ....

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....inger is to be construed as a vegetable. Further the honourable Supreme Court affirmed the finding of the Division Bench of the High Court which held that green ginger would fall within the meaning of the words "sabji, tarkari or sak". Accordingly they held that green ginger is a vegetable. Ginger or garlic paste in view of its non-mentioning in any of the schedules, would have to be construed into one of the closest proximate entry No. 3 of the Third Schedule which includes the words fruits and vegetables, etc. In view of the decision of the honourable Supreme Court we have to hold that ginger and garlic paste come within the definition of "vegetables". In these circumstances the fruits and vegetables coming within entry No. 3 of the Third....