JUDGMENT

BEG, C.J.I. :— The question before us in these appeals by special leave was framed as follows :-

"Whether Atukulu, (Parched rice) and Muramaralu (puffed rice) are rice within the meaning of Entry 66 (b) of Sch. I to the Andhra Pradesh General Sales Tax Act, 1957" ?

2. This question arose before the Andhra Pradesh High Court in appeals from single Judge decisions of the High Court, out of provisions of Andhra Pradesh General Sales Tax Act, 1957 (hereinafter referred to as the Act).

3. Section 5 (1) of the Act provides :

"5. Levy of Tax on Sales or Purchases of Goods : (1) Every dealer (other than a casual trader and an agent of a non-resident dealer) whose total turnover for a year is not less than Rs. 25,000/- and every agent of a non-resident dealer whatever be his turnover for the year, shall pay a tax for each year, at the rate of four paise on every rupee of his turnover."

Section 5 (2) enacts :

"Notwithstanding anything contained in sub-s. (1) the tax under this Act shall be levied -

(a) in the case of the goods mentioned in the First Schedule, at the rates and only at the point of the sale specified as applicable thereof effected in the State by the dealer selling them, on his turnover of sales in each year relating to such goods irrespective of the quantum of turnover,

(b) in the case of the goods mentioned in the Second Schedule, at the rates and only at the point of the purchase specified as applicable thereto, effected in the State by the dealer purchasing them, on his turnover of the purchase in each year relating to such goods irrespective of the quantum of turnover."

The First Schedule to the Act dealing with matters provided by S. 5 (2) (a) contains the Entry 66 which runs as follows :

"Description of goods. Point of levy. Rate of tax.

"66. Rice: (a) Rice not covered by (b) belew. At the point of sale by the first wholesale dealer in the State effecting the sale. 6 paise in the rupee.

Provided that a rebate of two paise in the rupee shall be allowed on the rice sold and consumed in the State in accordance with such rules as may be prescribed.

(b) Rice obtained from paddy that has met tax under the Act. At the point of sale by the first wholesale dealer in the State effecting the sale." 1 Paise in the rupee".

4. It seems that tax on paddy which was converted into Atukulu (parched rice) and Muramaralu (puffed rice) had already been levied in the form in which it comes to the market as a crop. The Division Bench of the High Court in the judgment under appeal before us stated :

"It is common case that the paddy out of which these commodities have been made in all the three cases has been subjected to tax."

On this assumption, the only question before us is whether the parched rice and the puffed rice are covered by item 66 (b) which reads : "rice obtained from paddy that has met tax under the Act." Paddy is defined in the dictionary as "rice in the husk". The question is : Does it cease to be even "rice" when it is converted into parched rice and puffed rice? It is true that it is no longer rice grain as it emerges from the husk. To make it edible as parched rice and puffed rice it has to go through further processes. These are only products obtained by converting rice grain into a different form of it by heating or parching. If such rice is still rice, even if we confine the term "rice" to grain, is it by going through these processes of heating or parching converted into separate items for the purposes of Entry 66 in the First Schedule of the Act ?

5. We find that considerable argument was advanced in the High Court on the question whether if parched rice and puffed rice are not covered at all by Entry 66 of the First Schedule it would still be taxable. We find that the answer given by the High Court was that, in any case, such rice would be taxable under S. 5. sub-s. (1) of the Act set out above.

6. It was also pointed out before us that paddy out of which the products in question become available, had already been ta