Diamond Biscuit Co. v. State Of West Bengal

p class=aplres> diamond biscuit co. Vs. State of west bengal

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The board has always held that in cases of doubt of this nature the criterion should be whether a commodity covered by the exception clauses is identifiable as such under the name in which it appears in the schedule of exceptions and whether it sells as such in the market. Now there can be no doubt that biscuits are not cakes nor are they pastries or sweetmeats though they are prepared more or less in the same way as cakes and pastries as well as bread. No one will accept biscuits from a dealer when he asks for cakes or pastries and vice versa. The result is that biscuits cannot be held to come under the exception mentioned in item no. 7, viz. , cakes, pastries and sweetmeats. In other words, biscuits are like any other kind of cooked food, the sale of which is exempted from sales tax, except when sold in sealed containers.

The petition is allowed. The assessment should be revised, leaving out of the taxable turnover the sale of all biscuits except those sold in sealed containers.

Backward reference (s) :

Forward reference (s) : 1980 - (va2) - vat - 0188 - all

Cases referred :

Laws discussed :