I.T.C. AGRO TECH LTD. versus COMMERCIAL TAX OFFICER AND ORS.

Citation: [2001] SUPP. 1 S.C.R. 18 · Decided: 25-07-2001 · Supreme Court of India · Bench: S.P. BHARUCHA · Disposal: Appeal(s) allowed
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Judgment (excerpt)

A 
l.T.C. AGRO TECH LTD. 
V. 
COMMERCIAL TAX OFFICER AND ORS. 
JULY 25, 2001 
B 
[S.P. BHARUCHA, Y.K. SABHARWAL AND BRIJESH KUMAR, JJ.] 
Sales Tax: 
Andhra Pradesh General Sales Tax Act, 1957-First Schedule-Entries 
C 24-A and 24-B-Refined oil and non-refined oil-Refined oil obtained from 
non-refined oil mentioned in Entry 24-A-Meaning of-Held, it means non-
refined oil described or set-forth under the Entry and does not mean non-
refined oil subjected to tax under the Entry. 
D 
Words and Phrases : 
'Mentioned'-Meaning in the context of an Entry in a Schedule to Sales 
Tax laws. 
Entry 24-A of the First Schedule to the Andhra Pradesh General Sales 
E Tax Act, 1957 deal with non-refined vegetable oil and Entry 24-8 deal with 
refined vegetable oil obtained from non-refined oil mentioned in Entry 24-A. 
Respondent-State issued Circulars under the Act clarifying Entry 24-8. The 
Circulars stated that the concessional rate of 2% sales tax under Entry 24-8 
is available only to those refined oils, which are obtained from non-refined 
oils that had suffered tax under Entry 24-A and that imposed refined oils, 
F which have not suffered tax under Entry 24-A, are taxable at a higher rate 
of 10% under the Seventh Schedule to the Act. Appellants filed Writ Petitions 
before High Court challenging the Circulars issued by the respondent-State. 
The High Court quashed the Circulars but, however, interpreted Entry 24-8 
by holding that only those refined vegetable oils are taxable which have 
G suffered tax in the non refined capacity under Entry 24-A. 
In appeals to this Court, the appellants contended that the word 
'mentioned' used in Entry 24-8 applied to all vegetable refined oils that were 
obtained from non-refined oil of the kind described in Entry 24-A; that the 
word 'mentioned' does not mean the words 'that has suffered tax' under 
H Entry 24-A; that where the intention was to apply an Entry only to articles 
18 
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l.T.C. AGRO TECH LTD. v. COMMERCIAL TAX OFFICER 
19 
that had suffered tax under the Act, the Entry specifically stated so; and that A 
Entry 24, before amendment, used the words 'if it had met the tax under the 
Act' and these words are not mentioned in the amended Entries 24-A and 
24-B. 
Allowing the appeals, the Court 
B 
HELD : 1.1. The words used in Entry 24-B of the First Schedule to the 
Andhra Pradesh General Sales Tax Act, 1957 plainly indicate that it is 
applicable to all vegetable oil (refined) that is obtained from the kinds of non-
refined oil that are described in Entry 24-A. The word 'mentioned' only means 
'described' or 'set forth' and no more. There was, therefore, no justification 
for the conclusion that only vegetable oil (refined) obtained from non-refined C 
oil that had been subjected to tax under Entry 24-A of the Schedule could be 
taxed at the rate of2%. Further, where the Schedule intended to refer to goods 
which were made from inputs that had suffered tax under the Act, the 
Schedule so stated. The fact that, before its amendment, Entry 24 had used 
the words 'if ;t had met tax under the Act' and these words were omitted D 
after the amendment would show that the construction now placed by this 
Court upon Entry 24-B is correct [20-A; 21-F-H) 
1.2. The orders of assessment made on the basis of the interpretation 
placed by the State on Entry 24-B are set aside. The State shall refund to the 
appellants the sums deposited by them as a condition of stay. [22-A, BJ 
E 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 6362 of 
1998. 
From the Judgment and Order dated 13.11.98 of the Andhra Pradesh 
High Court in W.P. No. 4752 of 1998. 
F 
WITH 
C.A. Nos. 6363-73/98, 1862, 3683, 4049-4052, 4615-4620, 4584-4586/ 
99, 4664 and 4665 of 200 I. 
. .-
F.S. Nariman, S. Ganesh and T.L.V. Iyer, Subhash Sharma, K. Kiran, G 
N. Ganpathy, Rajan Narain, Aruneshwar Gupta, C.R. Sridharan, Ms. Sushma 
Sharma, Ms. Kumud Singh for M/s. Law Consults for Mis. JBD and Co., Ms. 
T. Anamika, G. Prabhakar, Anil Kumar Tandale and K. Ram Kumar for the 
appearing parties. 
The Judgment of the Court was delivered by 
H 
20 
SUPREME COURT REPORTS [2001] SUPP. 1 S.C.R. 
A 
BHARUCHA, J. Leave granted in the special leave petitions. 
These appeals call for the interpretation of Entry 24-B of the First 
Schedule t<! the Andhra Pradesh General Sales Tax Act, 1957. 
The controversy would be clearer if both Entries 24-A and 24-B are 
B reproduced. They read thus: 
c 
D 
E 
SI. 
Description of Goods 
Point of 
Rate
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