Judgment

AYYANGAR, J. : This appeal on a certificate under Art. 133 of the Constitution granted by the High Court of Andhra Pradesh raises for consideration principally the question whether hardened or hydrogenated groundnut oil (commonly called Vanaspati) is "groundnut oil" within the meaning of Rule 18(2) of the Madras General Sales Tax (Turnover and Assessment) Rules, 1939.

2. Tungabhadra Industries Ltd. -the appellant in this appeal-has a factory of considerable size at Kurnool in the State of Andhra Pradesh. The company purchases groundnuts and groundnut kernels within the State and manufactures groundnut oil and also refined oil as well as hydrogenated oil all of which it sells. The appeal is concerned with the assessment to sales-tax of this company for the year 1949-50.

3. Section 3 of the Madras General Sales-tax Act, 1939 enacts :

"3. (1) Subject to the provisions of this Act,-

(a) every dealer shall pay for each year a tax on his total turnover for such year; and

(b) the tax shall be calculated at the rate of three pies for every rupee in such turnover.

2. ........... .......... ..........

3. ........... .......... ..........

4. For the purposes of this section and the other prov