The definition of tobacco in Item 4 of Schedule I to the Central Excises and Salt Act, 1944 does not include tobacco seed, and therefore tobacco seed is not exempted from the levy of sales tax under the A. P. General Sales Tax Act.

( 1 ) THE same question arises in both these cases, viz. , whether tobarce seed oil and tobacco seed cake are liable for the levy of tax under the previsions of the Andhra Pradesh General Sales Tax Act (hereinafter referred to as the Act,) or whether they are exempted under schedule IV of the Act. The matter first came up for hearing before Alladi Kuppuswami, J sitting single, and by his order dated June 7, 1976 he referred the matter to a Division Bench because he felt some difficulty in following the decision of ramachandra Raju, J fsitting single in Sikkakollu Subba Rao and Co. V. State of A. P. (1) 36 STC 457. The decision of Ramachandra Raju, J dealt with the question of tobacco seed and not tobacco seed oil or tobaceo seed cake. But, it is obvious that if tobacco seed is not tobacco within the meaning of the relevant Entry in the Fourth Schedule of the Act, much lees can tobacco seed oil and tobacco seed cake be said to be tobacco within the meaning of the said entry.

( 2 ) UNDER section 8 of the Act, subject to such restrictions and conditions as may be prescribed,including conditions as to licences and licence fees, a dealer who deals in the goods specified in the Fourth Schedule shall be exempted from tax under this Act in respect of such goods. Item 7 in the Fourth schedule is tobacco . Explanation to the Fourth Schedule says that "expressions in items 5, 6 and 7 shall have the same meanings assigned to them in the Additional Duties of Excise (Goods of Special Importance) Act, 1957 being Central Act 58 of 1957. When one turns to that Act, one finds that under Section 1 (c) of the Additional Duties of Excise (Goods of Special importance) Act 1957, the word "tobacco" shall have the meaning assigned to it in Item 4 of the First Schedule to the Central Excises and Salt Act, 1944, and Item 4 of the First Schedule to the Central Excises and Salt Act defines "tobacco" as follows:-"tobbacco" means any form of tobacco, whether cured or uncured and whether manufactured or not and includes the leaf, stalks and stems of the tobacco plant, but does not include, any part of a tobacco plant while still attached to the earth".

( 3 ) IT is thus clear that by incorporation by reference the definition of "tobacco" as defined in Item 4 of the First Schedule to the Central Excises and Salt Act 1944 the Additional Duties of Excises (Good of Special importance) Act 1987 was incorporated as the definition in item 7 of the fourth Schedule to the Act, and if any particular item falls within this definition of "tobacco" by virtue of Section 8 of the Act, it would be exempted from tax.

( 4 ) IT may be pointed out that prior to the amendment of the Fourth schedule by the Amendment Act of 1970, Item 7 in the Fourth Schedule as it then was, under which goods were exempted to tax under section 8, the entry was "tobacco and all its products". The question whether tobacco seed oil and tobacco seed cake were exempted under the unamended provisions of Item 7 namely "tobacco and all its products" came up for consideration before a Division Bench of this Court consisting of Gopal Rao ekbote, J (as he then was) and Venkateswara Rao, J in Amara Purushotham mamidi Obaiah and Co. V. State of Andhra Pradesh (2) 29 S. T. C 654. It must be emphasised that the Entry with which the Division Bench in that case was concerned was "tobacco and all its products". In the judgment at page 657 speaking for the Division Bench, Venkateswara Rao, j observed. "it is common ground that tobacco seed oil is produced by crushing the seed and that the mass, which is formed as a result of the compression to which the seeds are subjected while extracting oil, goes by the name "tobacco seed oil-cake". As the oil and cake are produced by crushing the seeds which, according to Sri Anantha babu, form part of the tabacco plant, it is contended for the petitioner that none of those goods is exigible to tax. It is, on the other hand, argued by Sri Ramachandra Reddy, the learned Governmen

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