LexAVADH SUGAR MILLS LTD. versus THE SALES TAX OFFICER, SITAPUR & ANOTHER
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AVADH SUGAR MILLS LTD. v. THE SALES TAX OFF1CER, SITAPUR & ANOTHER February 22. 1973 .[K. S. HEGDE, P. JAGANMOHAN REDDY AND H. R. KHANNA, JJ:] U. P. Sales Tax Act 1948-Purchase tax on oilseeds-Groundnuts .whether oilseeds. The petitioner appellant purchased groundnuts mostly from cultiva· tors for the m""1facture of oil. ~lying on decisions of the Madhya Pradesh and Punjab High Court he coo.tended that grc>undnuts were .not oilseeds and thus not liable .to be subjected to purchase-tax under the UJ'. Sales Tax Act. The Allahabad High Court rejected the con- tention. In appeal by certificate, HELD : In fipding out the tru~ meaning of term 'oilseeds' found in ·the Sales·T'llX law in question the Co.urt must refer not to tl\i! dictionary meaning but the meaning ascribed to the term in commercial parlance. 1bere can hardly be any doubt that in commercia.1 circles groun<tnut is d,ealt with as oilseed. The commercial journals refer to groundnuts as a species of oilseeds. [5470-F! Commissioner of Sales Tax, Mcdhya Pradesh, Indore v. laswant Singh ·Cluzran Singh, ( 19 S.T.C. 469), relied on. A seed is one which germinates. It is not disputed that the ground- nut germinates. Hence it is undoubtedly seed. It is mostly used for the ·manufacture of groundnut oil which is an edible oil. The decision relied OP by the appelhlllt mu•t accordingly be held to be wrong and 1he appeal must be dismissed. [547F-G] Commissioner of Sal.es Tax, Madhya Pradesh, Indore v. Bakhat Rai cl Co. (18 S.T .. C. 285) and Hans Rai Choudhri v. l. S. Rajyana, Excise and Taxation Officer, (19 S.T.C. 489), disapproved. CIVIL APPELLATE JURISDICTION : CivHAppeal No. 1352 of 1970. Appeal by certificate from the judgment and order dated 7th day of August 1967·of the.Allaliabad High Court in Special Appeal No. 94 of 1967. · . M. C. Chag/a, Suresh Sethi, Ji. K. Maheshwari, Maya Krirhan and B. P. Maheshwari, for the appellant. N. D. Karkhanis ;ind 0. P. Rana, for the respondents. The Judgment of the Court was delivered by HEGDE, J ...... This is an appeal by certificate. The only ques- tion that arises for decision is whether groundnut is oilseed. The High Court has come to the conclusion that the groundnut is oil- seed. The question is to the nature of groundnut came up for consideration !n connection with the levy of purchase-tax on the purchase of oilseed. The assessee in-this case is a manufacturer of oil and the assessee appears to have purchased groundnuts in A B c D , E F G H AVADH SUGAR MILLS V. S.T.O., SITAPUR (Hegde, /.) 547 A large quantity for the manufacture of oil. He contended before the assessing authorities as well as before the High Court, un- successfully, that groundnut is not oilseed. In support of that contention, he relied on the decision of the Madhya Pradesh High Court in Commissioner of Sales Tax, Madhya Pradesh, Indore v. Bakhat Rai & Co. (18 S.T.C. 285) and the decision of a single B Judge of Punjab & Haryana High Court in Ha~ Raj .Choudhri v. J. S. Rajyana, Excise and Taxation Officer (19 S.T.C. 489). These two decisions undoubtedly support his c\)ntention. The learned Judge of the Allahabad High Court have not ,accepted those decisions as laying down the law correctly and we are in agreement with the view taken by the learned Judges of the c Allahabad High Court. D E .F G The petitioner in his Writ Petition has definitely ,stated that he purchased groundnuts mostly from cultivators for the manu- facture of oil. Hence there is no doubt that he purchased ground- nut for the purpose of manufacturing oil. We shall now proceed to consider whether groundnuts are seeds and further whether they are oilseeds. In finding out the true meianing of term "oilseeds" found in the Sales-tax law in question, we are not to refer to dictionaries. We are to find out the meaning ascribed to that term in commercial parlance. See the decision of this Court in Commissioner of Sales Tax, Madhya Pradesh, Indore v. Jaswant Singh Charan Singh (19 S.T.C. 469) .. There can hardly be any doubt that in commercial circles growljf- nut is dealt with as oilseed. The commercial journals and news- papers while quoting the market price of oilseeds list groundnuts 'as one of the species ol oilseeds. From this, it is clear that in rommercial circles groundnut is treated ·as oilseed. A seed is one which germinates. It is not disputed that the groundnut germinates. Hence it is undoubt
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