State of Tamil Nadu and others vs Keerthi Stores and others

Thanikkachalam, J.—In these tax cases, the Revenue is petitioner. The common question that arises for consideration in all these tax cases is

:

Whether the peas and the peasdhall would fall under item 6-A(iv) of the Second Schedule to the Tamil Nadu General Sales Tax Act, 1959, or

whether they would fall under item 80(b) of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959.

A similar question came up for consideration before this Court in W.P. Nos. 22144 of 1993, etc. (batch) (Prema Traders v. State of Tamil Nadu).

In the said writ petitions, by order dated December 23, 1994, this Court held that peas and peas-shall would not fall under item 6-A of the

Second Schedule, but would be taxable under item 80 of the First Schedule to the Tamil Nadu General Sales Tax Act. Accordingly, it was held

that the petitioners are liable to pay surcharge, additional surcharge and additional sales tax. It was further held that chick-peas would come under

item 6-A(iv) of the Second Schedule, and not under item 80(b) of the First Schedule. Hence the sale turnover of chick-peas cannot be taxed more

than 4 per cent. Accordingly, surcharge, additional surcharge and additional sales Tax cannot be levied on the sale turnover of chick-peas.

Following the abovesaid order of this Court in W.P. Nos. 22144 of 1993, etc. in the present tax cases also, we hold that the sales turnover, on

the peas and peasdhall would not fall under item 6-A(iv) of the Second Schedule, but would fall under item 80 of the First Schedule to the Tamil

Nadu General Sales Tax Act. Therefore, the assessee in these tax cases are liable to pay surcharge, additional surcharge and additional sales tax

on the sales turnover of peas and peasdhall. In so far as the sales turnover on chick-peas is concerned, that would fall under item 6-A(iv) of the

Second Schedule and not under 80(b) of the First Schedule and hence the sales turnover of chick-peas cannot be taxed more than 4 per cent.

Therefore, surcharge, additional surcharge and additional sales tax cannot be levied on the sales turnover of chick-peas. In that view of the matter,

the order passed by the Tribunal stands set aside and the order passed by the first appellate authority stands confirmed and the sales tax revisions

filed by the Revenue are allowed. No costs.

Petitions allowed.