JUDGMENT

Dalveer Bhandari, J.

1. These appeals are directed against the judgment dated 8th May, 2001 passed by the High Court of judicature, Andhra Pradesh at Hyderabad in Tax Revision Case No.89/94, Tax Revision Case No.90/94 and Writ Petition No. 32154 of 1998.

2. Brief facts which are necessary to dispose of these appeals are recapitulated as under:-

3. The appellant is engaged in the business of purchasing various spices like Cumin Seed (Jeera), Fenugreek Seeds (Methi), Cinnamon (Dalchini), Caraway Seeds (Shahijeera) etc. from the registered dealers in the State of Andhra Pradesh and the said items are subjected to sales tax at the point of first sale under Entry No.182 of the First Schedule to the Andhra Pradesh General Sales Tax Act, 1957 (hereinafter referred to as the APGST Act, 1957). All the said items are called spices . The appellant by mixing and grinding all these spices together produces masala powder which is used for enhancing the taste of food.

4. The appellant filed income-tax returns for the assessment years 1990-91, 1991-92, 1992-93 claiming exemption on the ground that the ingredients used for the preparation of masala powder have already been taxed under Entry 182 of the First Schedule to the APGST Act, 1957 and as the said ingredients are chargeable only at the first sale point, the masala powder is not further exigible to sales tax.

The contention of the appellant was not accepted by the Commercial Taxes Officer. Being aggrieved by the order of the Commercial Taxes Officer, the appellant preferred an appeal before the Appellate Deputy Commissioner, which was rejected. Thereafter, the appellant filed an appeal to the Sales Tax Appellate Tribunal (for short the Tribunal ). The Tribunal also rejected the appeal. The Tribunal held that the masala powder is not a mere mixture of some of the spices specified in Entry 182. According to the Tribunal, some of the spices like Cumin Seeds (Jeera), Caraway Seeds (Shahijeera) etc. along with other materials like Salt, Coriander (Dhania) etc. which are not specified in the Entry 182 are powdered and mixed in specified and required proportion and after mixture, these spices lose their original flavour and character and as such cannot be considered as spices falling under Entry 182 of First Schedule.

5. The masala powder prepared after grinding and mixing of various ingredients is commercially a different commodity liable to be taxed. Item 182 of the First Schedule refers to Spices that is to say Cumin Seed (Jeera), Fenugreek Seeds (Methi), Cloves, Cinnamon, Caraway Seeds (Shahijeera), Cardamom, Dry Ginger, Aniseed (Saunf), Nakesar (Kabab Chini), Bay Leaf (Tej Patta), Poppy Seeds, Nutmeg and Mace (Javitri) . Masala powder is not specified in the said exhaustive list of goods mentioned in Entry 182. It is the result of grinding or powdering of several ingredients. Some of these spices are specified in Entry 182. The Tribunal upheld the order of the Deputy Commissioner and dismissed the appeal. On appeal, the High Court upheld the order of the Tribunal.

6. The appellant has preferred these appeals against the impugned judgment of the High Court and submitted that the Entry 182 of the First Schedule to the APGST Act, 1957 should not be given a narrow interpretation. The mixtures of spices mentioned in the Entry would also amount to spices within the definition of Entry 182. The appellant also submitted that under VIIth Schedule to the Act, only those goods which are not specified in Ist to VIth Schedules can be taxed.

7. The appellant submitted that the Spices Board constituted under the Spices Board Act has declared a list of 52 items in any form including Curry Powder, Spice Oil, Oleoresins and other mixtures where spices content is pre-dominant as spices as per section 2(n) of the Spices Board Act, 1996. The appellant has set out a list of spices in Annexure P5 along with these appeals. It is not necessary to reproduce the names and