Civil Appeal Nos
912 to 916 of 1971
Appeals by Special Leave from the Judgment and Order dated the 2nd July 1969 of the Orissa High Court in Special Jurisdiction Cases Nos 73 74 75 and 76 of 1964
V C Mahajan and R N Sachthey for Appellants In CAs
912 1371 R N Sachthey for Appellant in CAs
914 1671
Gobind Das amicus curiae for Respondent
The Judgment of the Court was delivered by GOSWAMI J
Five quarters of assessment of sales tax are involved in these five appeals by special leave the period commencing from January 1 1959 to March 31 1960
This judgment will govern all these appeals involving a common question
The Assistant Sales Tax Officer Cuttack included in the turnover of the respondent the sale price of jeera dhania coriander panmohuri methi postak and pipall and levied 5 per cent sales tax under the Orissa Sales Tax Act briefly the State Act
On appeal the Assistant Commissioner of Sales Tax Puri allowed the claim of the respondent and held that the above items are oil seeds within the meaning of section 14vi of the and gave the respondent the benefit of a lower tax of 2 per cent on the sale turnover of those goods instead of 5 per cent under the State Act
On appeal by the State of Orissa to the Sales Tax Tribunal claiming 5 per cent on the sale turnover thereof under the provisions of the  the orders of the Assistant Commissioner were affirmed
On application by the State for each of the five quarters the Tribunal referred the following two common questions under section 24 of the State Act 1 Whether in the facts and circumstances of the case the Sales Tax Tribunal is right in holding that jeera dhania panmohuri methi postak and pipali are oil seeds within the meaning of section 14 of the Central Act and the tax payable under the State Law in respect of the sale or purchase of these goods inside the State cannot exceed 2 per cent of the sale or purchase price thereof
2 Whether the communication No 48 ST57 dated 31st January 1958 issued by the Government of India which is only an official communication having no statutory sanction behind it can have any legal effect to hold the goods in question as oil seeds as understood in common parlance and whether such an official communication is binding on the State Government
 We are not concerned with pipali  in these appeals
968 When these appeals came before us for hearing the respondent was not represented
We therefore requested Mr Gobind Das to act as amicus curiae in these appeals
Before we may proceed further we may immediately turn to section 14vi of the briefly the Central Act 14
Certain goods to be special importance in inter State trade or commerce
It is hereby declared that the following goods are of special importance in inter State trade or commence vi Oil seeds that is to say seeds yielding non volatile oils used for human consumption or in industry or in the manufacture of varnishes soaps and the like or in lubrication and volatile oils used chiefly in medicines perfumes cosmetics and the like
The above definition is an explanatory one and uses mentioned therein cover a wide range
If the particular items which are assessed under the State Act can be brought under the definition of oil seeds as given in the above provision the assessee will be entitled to a lower levy of sales tax
Mr Mahajan appearing on behalf of the appellant sumbits that the Court should adopt the meaning given to these items in common parlance and by the people who use the articles
He chiefly relies upon a decision of the Andhra Pradesh High Court in The State of Andhra Pradesh vs Kajjam Ramchandraiah Gari Anantaiah
In that case the High Court was dealing inter alia with an identical item viz dhania coriander under item 3 of Schedule IV of the Andhra Pradesh General Sales Tax Act 1957
Item 3 is identical with item vi of section 14 of the Central Act giving the definition of oil seeds
The Andhra Pradesh High Court relied upon a letter from the Director of the National Chemical Laboratory Poona dated January 29 1959 addressed to the Secretary Council of Scientific and Industrial Research New Delhi as also upon another letter from the Central Food Technological Research Institute Mysore dated February 18 1959 and came to the conclusion that amongst other things dhania coriander did not come within the definition of oil seeds
The High Court also held that it was not difficult to envisage with the increase in scientific knowledge and technological development that oil could be extracted from any seed which might not be known as an oil seed in common parlance
That Court also observed that there was no evidence to show that any oil was extracted in this country or that the oil extracted from the seeds concerned was used commercially or industrially or could be bought in the market
In this view of the matter the Andhra Pradesh High Court held that dhania and other seeds which came up for consideration were not oil seeds under item 3 of Schedule IV of the Andhra Pradesh Sales Tax Act
It is interesting that on this finding of that Court coriander escaped altogether from assessment
969 In Commissioner of Sales Tax Madhya Pradesh Indore vs Bakhat Rai and Co the Madhya Pradesh High Court also took the same view as that of the Andhra Pradesh High Court while dealing with item 3 Part II Schedule 1 of the CP and Berar Sales Tax Act
In the Madhya Pradesh case however the term oil seed  has not been defined under the Act
The Court therefore held that since it was an item of every day use it must be construed in its popular meaning that is to say in that sense which people conversant with the subject matter with which the statute was dealing would attribute to it
The Division Bench of the Kerala High Court has also held in The Deputy Commissioner of Agricultural Income tax and Sales Tax Kozikode vs V Sreedhara Shenoy that dhania coriander and methi are not oil seeds under section 14vi of the Central Act
Mr Mahajan has strenuously submitted that the articles in question are spices to all indents and purposes and not oil seeds
He further submits that even if they are oil seeds in the sense that these yield non volatile oil to a certain extent no evidence has been produced by the assessee that these are used for human consumption or in industry or in the manufacture of varnishes soaps and the like or in lubrication or in medicines perfumes cosmetics and the like as mentioned in the definition
Mr Gobind Das on the other hand has drawn our attention to the fact that the High Court had before it the Condensed Chemical Dictionary 7th Edition edited by Arther and Elizabeth Rose from which the following informations regarding the seeds in question were available Dhania coriander seed botanical name coriandrum sativem
Coriander oil is distilled from the coriander sativum a colourless or slightly yellowish liquid having aromatic odour
Jeera cumin seed Cumin oil is distilled from the cumin seed and is used for medicine flavouring and perfumery
It is a colourless or yellowish limpid liquid having characteristic odour of cumin
Postak poppy seed botanical name papover somniferum
Poppy oil is a very pale golden yellow liquid with pleasant taste and odour extracted from the seeds and it is used as food oil artist s colours varnishes  lubrication
Methi Fenugreek botanical name trigonella Foenumgraecum vide p 164 vol 9 of the Encyclopaedia Britannica
It is stated inter alia therein that it bears a sickle shaped pod containing from 10 to 20 seeds from which 6 of a foetid fatty and bitter oil can be extracted by ether
Besides the High Court also had before it the notification of the Ministry of Finance Department of Economic Affairs Government of India dated January 3 1959 wherein amongst other commodities 970 the following were stated to be included in the term oil seeds under item vi of section 14 of the Central Act 18Poppy seed Posta dana Khaskhas 37 Aniseed saunf 42 Coriander seeds Dhania 44 Cuminseed Jeera Safed Jeera 49 Fenugreek seeds Methi
Mr Gobind Das also drew our attention to the Webster s Third International Dictionary where coriander seed is described as the ripened dried fruit of coriander used for flavouring especially of pickels curries confectioneries and liquors
 These appeals arise out of a decision in a reference under section 24 of the State Act under article 136 of the Constitution and we have to consider whether it is a fit case for interference with the order of the High Court when it held that the Sales Tax Tribunal was right in its conclusion
It is true the High Court has rightly observed that the aforesaid notification of the Government of India has no statutory force and as such is not binding on the Sales Tax Officer
It cannot however be denied that the Ministry of Finance Department of Economic Affairs is intimately conversant not only with the policy of legislation for the purpose of implementation of the provisions of the Central Act but is also familiar with the nature and quality of the commodities as also their use from time to time
If therefore such an authority issued a notification including certain commodities under the head of oil seeds  as defined under the Central Act it cannot be said that the Tribunal and the High Court were not right in preferring such an opinion of the Government as good evidence for its conclusion to the opinions relied upon by the Andhra Pradesh High Court on which great reliance has been placed by the appellant
A persual of the contents of the letters referred to in the judgment of the Andhra Pradesh High Court would indicate that the opinions cannot be said to be very firm or even final
Apart from this it is not known whether all the uses which are mentioned in the definition of oil seeds were brought to the notice of the National Chemical Laboratory Poona and of the Central Food Technological Research Institute Mysore in rendering their opinions
If therefore the Tribunal in the facts and circumstances of the case held that the particular commodities came within the definition of clause vi of section 14 of the Central Act it is not possible to hold that it was not right
The answer to the first question by the High Court is therefore rightly in the affirmative
We do not also see anything wrong in the High Court s answering the second question in the way it did
The appeals therefore fail and are dismissed
There will be no order as to costs
We are thankful to Mr Gobind Das for assisting the Court as amicus curaie
VPS Appeals dismissed


Summary:
Under section 14vi  among goods declared to be of special importance in inter State trade and commerce are mentioned oil seeds that is to say seeds yielding non volatile oils used for human consumption or in industry etc or volatile oils used chiefly in medicines etc
The Assistant Commissioner under the Orissa Sales Tax Act the Tribunal and the High Court on reference held that jeera dhania panmohuri methi and postak are oil seeds within the meaning of section 14vi and liable to a lesser rate of tax
The High Court relied on ordinary and technical dictionaries and a notification of the Ministry of Finance Department of Economic Affairs Government of India dated January 3 1959 for its conclusion
In appeal to this Court under article 136 it was contended by the State relying on State of Andhra Pradesh vs Kajjam Ramchandraiah Gari Anantaiah 1961 12 STC 795 that the Court should adopt the meaning given to these articles in common parlance by people who use them that so understood they are spices and not oil seeds and that though they yield non volatile oil to a certain extent there is no evidence that they fall within the description in section 14vi
Dismissing the appeal  HELD It cannot be said that the Tribunal was not right and so it is not a fit case for interference under article 136 when the High Court held that the Tribunal was right
970C D G a Item 3 Schedule IV AP General Sales Tax Act 1957 is identical with section 14vi of the Central Act
In Kajjam Ramachandriah s case the Andhra Pradesh High Court held that dhania did not come within the definition of oil seeds relying on some letters from i Director National Chemical Laboratory Poona and ii Central Food Technological Research Institute Mysore
968F b The High Court was right in the present case in holding that the notification of the Government of India had no statutory force and was not binding on the Sales Tax Officer but it cannot be said that the High Court and Tribunal were not right in preferring the opinion therein as good evidence for their conclusion to the opinions in the letters relied upon by the Andhra Pradesh High Court
The Ministry of Finance which issued the notification is intimately conversant not only with the policy of legislation for the purpose of implementation of the provisions of the Central Act but is also familiar with the nature and quality of the commodities and also their use from time to time
970D F c Further the letters of the Director National Chemical Laboratory and the Central Food Technological Research Institute do not indicate that the opinions expressed therein were firm or even final or whether all the uses mentioned in the definition of oil seeds were brought to their notice
970F Commissioner of Sales Tax Madhya Pradesh Indore vs Bakhat Rai and Co 1966 18 Sales Tax Cases 285 and The Deputy Commissioner of Agricultural Income tax and Sales Tax Kozhikode vs Sreedhara Shenoy 1973 32 Sales Tax Cases 181 referred to 967