LexCOMMERCIAL TAXES OFFICER versus M/S. JALANI ENTERPRISES
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[2011) 3 S.C.R. 951 COMMERCIAL TAXES OFFICER v. M/S. JALANI ENTERPRISES (Civil Appeal No. 2558 of 2011) MARCH 17, 2011 [DR. M.UKUNDAKAM SHARMA AND ANIL R. DAVE, JJ.] . . Rajasthan Sa/es Tax Act, 1954: Notification dated 29.03.2001, Entry No. 184: A B c Jaljira - Sa/es tax - Levy of - Held: From the manner and method of preparation of the product Jaljira, it is found that Jaljira is a mixture of different spices after grinding and mixing - Sa/es tax is levied on sale of commercial commodities, and individual spices could be termed as o different commercial commodities - Therefore, Jaljira is a Masa/a packed into packets of different nature/quantity and sold to the consumers - It would come within the Entry No. 184 and taxable at the rate of 16%. Aachar Masala, Jaljeera powder, Anar Masala, Methi E Chatani, Pudina, Lehsoon Chatni, Chat Masa/a, Kitchen Masa/a, Mangodi Masa/a, Sambhar Masa/a, Dal Masa/a, Kasuri Methi, Heena Powder, Shikkai Powder, Lahsoon powder - Sa/es tax - Levy of- Held: These would be Masa/a packed falling underEntry No. 184 of the notification dated F 29.03.2001 - Thus, taxable at the rate of 16%. ldli Mix and Dosa Mix - Sa/es Tax - Levy of - Held: Cannot be said to be Masala - Thus, would be excluded from being assessed for the purpose of sales tax assessment as G 'masa/a'. The question which arose for consideration in these appeals are whether Jaljira and similar other products as also ldli Mix and Dosa Mix are not Masala and therefore, 951 H 952 SUPREME COURT REPORTS [2011] 3 S.C.R. A they are liable to be assessed to sales tax at the rate of 10% and not 16%. Allowing the appeals, the Court HELD: 1.1 Each one of the contents of the product B Jaljira, namely Salt, Kala Namak, Nimbu Ka Sat (Citric Acid), Sonth, Kalimirch, Pudina, Hing, Jira and Lalmirch, relied upon by the High Court would indicate that most of the items used in the manufacture of Jaljira are nothing else but spices. They are grinded and mixed. C When spices are grinded and mixed, it gives rise to a new product, which is a mixed masala. Different ingredients are used in preparation of Masala after grinding and mixing several ingredients and when they are so grinded they lose their own identity and character and a new D product separately known to the commercial world comes into existence. Sales tax is levied on sale of commercial commodities, therefore, individual spices could be termed as different commercial commodities. When they are grinded and mixed they give rise to a E separate commercial commodity altogether which could be taxed separately. [Para 17] [960-G-H; 961-A-C] 1.2 When one particular item is covered by one specified entry, then the Revenue is not permitted to travel to the residuary entry. If from the records it is F established that the product in question could be brought under a specific entry then there is no reason to take resort to the residuary entry. There is no doubt that Jaljira is a drink. The contents of Jaljira Is put into water and taken as digestive drink but from the manner and method G of preparation of the product Jaljira, It Is found that it is a mixture of different spices after grinding and mixing. Therefore, it Is nothing but a Masala packed Into packets of different nature/quantity and sold to the consumers. It would, therefore, for all practical purposes would come H COMMERCIAL TAXES OFFICER v. MIS. JALANI 953 ENTERPRISES within the Entry No.184 and it cannot be said that it would A come under the residuary entry as held by the High Court. [Para 17] [961-C-E] 1.3 The clarificatory letter dated 12.11.2001 which was issued by the Deputy Secretary, Finance Department, Tax 8 Division, Government of Rajasthan specifically states that "Packed Masala" used in entry number 184 means, a Masala where two or more ingredients are mixed and sold in packed conditions. The said letter is in the nature of clarification of entry number 184. Although the said C letter is an inter-departmental communication, the revenue authorities, namely, the appellant is governed and bound by the said letter though the said letter may not have been circulated to the respondent but it cannot be said that clarification given by the Department cannot be made use of for interpreting· the entry in the D notification. Even otherwise, the entries in the notification ·by themselves are quite clear to include the said product within
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