Judgment

ALAGIRISWAMI, J. :- The question for decision in these cases is about the liability to sales tax under the Andhra Pradesh General Sales Tax Act of watery coconuts . The Act contains four schedules. The First Schedule contains goods in respect of which a single point sales tax only in leviable under Section 5 (2) (a). The Second Schedule contains goods in respect of which a single point purchase tax only is leviable under Section 5 (2) (b). The Third Schedule contains declared goods in respect of which a single point tax only is leviable under Section 6. The Fourth Schedule contains goods exempted from tax under Section 8. By an amendment made in 1961, there was till 1963 only one entry; coconuts , in The Third Schedule and the Fourth Schedule contained tender coconuts which are useful only for drinking purposes which were exempted from tax. An explanation to the Third Schedule read as follows :

The expression coconuts in this Schedule means fresh or dried coconuts, shelled or unshelled including copra, but excluding tender coconuts.

By amending Act XVI of 1963 this explanation was replaced by another explanation, which read :

The expression coconuts in this Schedule means dried coconuts shelled or unshelled including copra, but excluding tender coconuts.

Thus coconuts were divided only into two classes, coconuts as defined in the explanation and tender coconuts.

2. After the amendment of 1963 certain dealers questioned their liability to tax on the purchases made by them of watery coconuts. That challenge was upheld by a learned single Judge of the Andhra Pradesh High Court in Sri Krishna Coconut Co. v. Comml. Tax Officer, 16 STC 511 : (AIR 1966 Andh Pra 128). The learned Judge s reasoning was that a fully grown coconut with a well developed kernel which contains water could not be called either a tender or a dried coconut, and that this was the well-known variety of coconuts used for culinary purposes and on auspicious occasions and as part of the offerings in temples. He drew particular support for his conclusion from the omission of the word fresh from the new explanation in the Third Schedule.

3. Thereafter, by Amending Act 18 of 1966 the explanation in the Third Schedule was replaced by another explanation which read :

The expression coconuts in item 5 means dried coconuts, shelled or unshelled including copra, but does not include watery coconuts falling under item 10 of the Second Schedule and tender coconuts falling under item 9 of the Fourth Schedule.

At the same time item 10 watery coconuts was included in the Second Schedule and to this there was an explanation added which read :

The expression watery coconuts in item 10 includes all coconuts other than coconuts falling under item 5 of the Third Schedule and tender coconuts falling under item 9 of the Fourth Schedule.

Thus for the first time coconuts were divided into three classes, tender coconuts, watery coconuts and coconuts.

4. After this the question arose whether watery coconuts are oilseeds and as such declared goods within the meaning of that term in item 6 of Section 14 of the Central Sales Tax Act and the Andhra Pradesh High Court in Taquoob Mohammad v. Comml. Tax Officer, (1971) 28 STC 110 (Andh. Pra). held that watery coconuts were oilseeds. It was thereafter that the Andhra Pradesh Legislature passed Amending Act XII of 1971 which came into force on 17-4-1971. By that Act item 10 in Second Schedule relating to watery coconuts and the explanation thereto were omitted and this amendment was given effect to from 1-8-1963. Item 5 of the Third Schedule was amended as coconuts of all varieties and a new item 5-A was introduced which reads as follows :

5-A. Watery Coconuts (i) At the point of the last purchase in the State during the period commencing on the 1st August, 1963 and ending with the 31st March, 1965. 2 paise in the rupee.

(ii) At the point of first sale in the State during the period