Judgement

B. C. RAY, J.:- This appeal by special leave is against the judgment and order passed in appeal from Original Order No. 612 of 1971 dt. May 31, 1973 by the Division Bench of the High Court of Calcutta affirming the judgment and order of the learned single Judge made in Civil Revision Case No. 5805 of 1970. The respondents who are licensed dealers under the West Bengal Edible Oil Seed Dealers Licensing Order, 1963 have challenged the imposition of entry tax on groundnuts imported into Calcutta Metropolitan Area for the purpose of manufacture of groundnut oil under the provisions of the Taxes on Entry of Goods into Calcutta Metropolitan Area Act, 1970 on the ground that such importation of groundnuts as oil seeds is not subject to any levy under the provisions of the said Entry Tax Act inasmuch as there is no specific provision for levy on groundnuts as oil seeds for manufacturing edible oil. They have therefore prayed for a mandate directing the appellants not to impose any entry tax on the ground that they are edible nuts failing under specific entry of edibles provided in, the Schedule to the said Act. There was also a prayer for refund of the taxes already imposed and collected by the respondents.

2. The learned single Judge who issued the rule after hearing both the parties held that though under Sl. No. 4, Item No. (t) of the Schedule to the said Act, nuts was a specified item for purposes of imposition of entry tax as shown in corresponding column No. 3 in the said Schedule yet the learned Judge held that since groundnut is oil seed for manufacturing edible oil which is not subject to entry tax, the groundnut imported for the purpose of extracting oil as oil seed by the dealers was not subject to the imposition of entry tax. It was further held that the term groundnut might answer the description of being nuts used as edibles as also oil seeds for edible oils. The legislature intended to impose levy on nuts imported as edibles and not to cover such nuts imported as oil seeds for edible oils. The rule was made absolute with costs and a writ of mandamus was issued directing the appellants herein not to impose any levy under the provisions of the said Act. There was also a further mandate upon the appellants herein directing them to refund all taxes realised under the said Act on groundnut imported by the petitioners, respondents herein into Calcutta Metropolitan Area.

3. Against this judgment and order the respondent State of West Bengal preferred an appeal. This appeal was dismissed and the judgment and order of the learned single Judge was affirmed. It was held that the intention of the legislature was that edible oil or oil seeds would not be liable to tax. The Court referring to the decision in Avadh Sugar Mills Ltd. v. Sales Tax Officer, (1973) 31 STC 469 held that in commercial circle groundnut was treated as oil seed for manufacture of oil. It did not refer to nuts as such, and as such groundnut did not fall within the ambit of entry tax as provided in the said Entry Tax Act. Against this judgment and order the instant appeal on special leave was filed.

4. The sole question that poses itself for consideration in this appeal is whether groundnuts failing within the description of nuts in Schedule in Class-I, Item No. 4(t) is liable to be taxed under the Taxes on Entry of Goods into Calcutta Metropolitan Area Act, 1970 in case the purpose of importer is to extract oil therefrom. It has been urged on behalf of the respondents that oil seeds or edible oils are not specified items for the purpose of imposition of entry tax under S. 6(1) of the said Act. The importation into Calcutta Metropolitan Area of groundnuts by the respondents for the purpose, of manufacturing groundnut oil is exempt from the levy of entry tax according to them. It is necessary to quote here the relevant provisions of the Schedule for the purpose of determining this question.

Serial No. Specified goods Rates of tax

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Class I Articles of fo