The term "sugar" in entry 47 of Schedule A to the Bombay Sales Tax Act, 1959, covers all forms of sugar containing more than 90% sucrose, regardless of their shape, texture, color, or density.

Judgment

DESAI, C. J.

( 1 ) THIS is a reference under section 61 (1) of the Bombay Sales Tax Act, 1959. The opponents are registered dealers dealing inter alia in "patasa", "harda" and "alchidana". The opponents requested the Deputy Commissioner of Sales Tax (Appeals), Gujarat State, Ahmedabad, to determine under section 52 (l) (e) of the Bombay Sales Tax Act, 1959, whether any tax was payable in respect of the sales of "patasa", "sakar", "bura sugar", "harda" and "alchidana". Along with their application, they sent two copies of bills Nos. 46, 85 and 92 dated respectively 2/05/1960, 1/07/1960, and 9/07/1960. The Deputy Commissioner of Sales Tax held that the sale of "bura sugar" was exempt from tax as the item was covered by entry 47 of Schedule A to the Bombay Sales Tax Act, 1959, whilst the sales of other articles were covered by entry 22 of Schedule E to the Act and tax was payable on them. By a further order dated 3/10/1960, the Deputy Commissioner rectified the earlier order and held that the other articles were covered, not by entry 22 of Schedule E, but by entry 31 of Schedule C to the Act. The Commissioner of Sales Tax in revision, by his order dated 24/10/1960, held that "sakar" (sugar-candy) was a form of sugar and was covered by the definition of sugar in entry 47 of Schedule A and was also exempt from tax. He held that articles like "patasa", "harda" and "alchidana" were products of sugar and not sugar as such in any form. The matter was carried further before the Sales Tax tribunal. The tribunal held that "patasa", "harda" and "alchidana" should be treated as forms of sugar and not sweets or products of sugar and were covered by entry 47 of Schedule A and were exempt from tax. At the instance of the State of Gujarat, this reference has been made for the determination of the following questions:

" (1) Whether on the facts and in the circumstances of the case the sales of patasa, harda and alchidana (small lumps of sugar) effected by the opponents under their bills Nos. 46 and 92 dated 2/05/1960, and 9/07/1960, respectively are exempt from the payment of all taxes leviable under the Bombay Sales Tax Act, 1959, adapted to the State of Gujarat by virtue of entry 47 in Schedule A to the said Act ?

(2) Whether the sales of patasa, harda and alchidana by the opponents can be regarded as the sales of sweets and sweetmeats within the meaning of entry 31 of Schedule C to the Bombay Sales Tax Act, 1959, or whether such sales should be covered by entry 22 of Schedule E to the Act?"the tribunal has clarified the fact that "alchidana" or small lumps of sugar referred to by them did not contain any edible articles such as seeds of cardamom or groundnuts but were pure lumps of sugar. In the judgment of the tribunal it has been observed as under:-

"if the chemical composition of the articles is to be taken as a guide in interpreting the entry 47 there is no doubt that patasa, harda and the alchidana are merely different forms of sugar as defined by the central Excises and Salt Act, 1944. We were informed that a small portion of hydrogen sulphide is passed through the sugar solution for bleaching purposes after which patasas are prepared by splashing the solution on a piece of wood which converts the sugar into amorphous sugar, the hardas are prepared by pouring the solution into moulds which is then allowed to cool and the alchidanas are prepared by rapidly passing the solution of appropriate thickness through a sieve so as to convert it into granulated lumps of sugar. But whatever the process these articles are only forms of refined sugar with the requisite sucrose content. . . . . . . . . . . . . . . After undergoing all the process, the articles continue to be sugar as defined by the Excises and Salt Act and the fact that they are distributed on festive occasions will not make them anything else than sugar on that account. It may be noted that it is possible to convert any of these articles into other articles by dissolving them