LexM/S A.P. PRODUCTS versus STATE OF ANDHRA PRADESH AND ORS.
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_,; •·-.' A MIS A.P. PRODUCTS ' ;r v. STATE OF ANDHRA PRADESH AND ORS. JULY 9,2007 B [ASHOK BHAN AND DAL VEER BHANDARI, JJ.] Andhra Pradesh General Sales Tax Act, 1957: '( c First Schedule-Entry I 82- 'Masai a powder' prepared by mixing and grinding spices like Jeera, Met hi, Dalchini etc. -Held: Becomes commercially a different commodity liable to be taxed. Appellant-assessee was engaged in the business of preparing 'masala ... ~ powder' after mixing and grinding together various spices like Jeera, Methi, D Dalchini, Shahjeera etc. The appellant filed returns claiming exemption on the ground that the ingredients used for preparation of 'masala powder' had already been taxed under Entry 182 of the First Schedule to the A.P. General Sales Tax Act, 1957 and, as the said ingredients were chargeable only at the first sale point, the 'masala powder' was not further exigible to sales tax. The assessing authority, the appellate authority and the A.P. Sales Tax Appellate E Tribunal rejected the plea of the assessee. The High Court having upheld the order of the Tribunal, the assessee filed the instant appeal. It was contended for the appellant that there was no chemical or mechanical process involved in producing the 'masala powder' nor the process F brought about a new commodity which could be differently identified in common and commercial parlance and, as such, the 'masala powder' could not be subjected to sales tax. Dismissing the appeal, the Court HELD: Admittedly, the ingredients which are used in preparation of G masala after grinding and mixing, lose their own identity and character and a new product separately known to the commercial world comes into existence I .. and, therefore, it becomes a separate taxable commodity for the purpose of r sales tax. In this view of the matter, the 'masala powder' prepared after grinding \ and mixing of various spices and condiments in certain proportion is H 126 /' A.P. PRODUCTS v. STATE OF ANDHRA PRADESH [DAL VEER BHANDARI, J.) 127 commercially a different commodity liable to be taxed. A (Para 28 and 29] (134-G; 135-8) Rajasthan Roller Flour Mills Association & Anr. v. State of Rajasthan & Ors .. (1994) Supp 1 SCC 413; State of Tamil Nadu v. Pyare Lal Malhotra & Ors., (1976) 1 SCC 834; Deputy Commissioner of Sa?es Tax v. Rani Food B Products, (1988) 68 STC 446; Sales Tax Commissioner v. Dhameja Home !ndustries, Indore, (1983) 54 STC 217; Ganesh Trading Co., Karna/ v. State of Haryana & Ors., (197413 SCC 620; State of Karnataka v. B. Raghurama >- Shetty & Ors., (1981) 2 SCC 564 and Babu Ram Jagdish Kumar & Co. v. State of Punjab & Ors., (1979) 3 SCC 616, relied on. Deputy Commissioner of Sales Tax (Law), Board of Revenue (Taxes), c Ernakulam v. Mis PIO Food Packers, (1980( Supp 1 SCC 174; Alladi Venkateswarlu & Ors. v. Govt. of Andhra Pradesh & Anr., (1978) 2 SCC 552; Tungabhandra Industries Ltd. v. The Commercial Tax Officer, Karna/, (1961) 2 SCR 14; Commissioner of Sales Tax, U.P. v. Mis Lal Kunwa Stone Crusher (P) Ltd. (2000) 3 SCC 525; State of Maharashtra v. Mahalaxmi Stores, (20031 D . 1 SCC 70 and Mis. Crane Betel Nut Powder Works v. Commissioner of Customs and Central Excise, Tirupathi and Anr., (20071 4 SCC 155, cited. Ishwari Khetan Sugar Mills P. Ltd & Ors. v. Slate ofU.P. & Ors., (1980) 4 sec 136, referred to. E CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 6104-6106 of 2001. ,, From the Judgment and Order dated 08.05.20()1 of the High Court of Judicature, Andhra Pradesh at Hyderabad in TRC Nos. 89 & 90 of 1994 and Writ Petition No. 32154 of 1998. F " B. Sunita Rao and Shanti Bhushan Chaubey for the Appellant. R. Sundaravardhan, Sr. Adv., Manoj Saxena, Rajnish K. Singh and T.V. George for the Respondents. G The Judgment of the Court was delivered by DALVEER BHANDARI, J. I. These appeals are directed against the i judgment dated 8th May, 2001 passed by the High Court of judicature, Andhra Pradesh at Hyderabad in Tax Revision Case No.89/94, Tax Revision Case No.90/94 and Writ Petition No. 32154 of 1998. H 128 SUPREME COURT REPORTS (2007) 8 S.C.R. A 2. Brief facts which are necessary to dispose of these appeals are recapitulated as under:- 3. The appellant is engaged in the business of purchasing various spices like Cumin Seed (Jeera), Fenugreek Seeds (Methi), Cinnamon (Dalchini), Caraway Seeds (Shahijeera) etc. from the registe~ed dealers in the State of B Andhra Prade
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