ORDER

The appeal is filed against the judgment and order of a Full Bench of the High Court at Andhra Pradesh. The appeal in this Court is restricted to the product gutka (gudaku).

2. The appellants manufacture and sell gutka under the brand name "Pan Parag". They filed a writ petition in the High Court challenging, inter alia, the introduction of Entry 194 in the First Schedule to the A.P. General Sales Tax Act. That entry sought to tax "pan masala including gutka....".

3. The contention on behalf of the appellants is that it is not open to the State of Andhra Pradesh to tax gutka. Section 8 of the State Sales Tax Act provides that a dealer who deals in the goods specified in the Fourth Schedule thereto shall be exempt from tax thereunder in respect of such goods. Entry 7 of the Fourth Schedule of the State Sales Tax Act refers to tobacco and the Explanation in this behalf is that the goods mentioned in Entry 7 "shall be goods included in the relevant heads and sub-heads of the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957, but does not include goods where no Additional Duties of Excise are levied under that Schedule". The said Additional