THE STATE OF ANDHRA PRADESH, ETC. versus MODERN PROTEINS LTD.

THE STATE OF ANDHRA PRADESH, ETC. versus MODERN PROTEINS LTD.

Groundnut protein flour is commercially distinct from deoiled cake, intended for human consumption whereas deoiled cake is intended for animal feed. Their commercial identity, use, and market recognition are different, so groundnut protein flour is not 'deoiled cake' within entry 29 of Schedule I of the Andhra Pradesh General Sales Tax Act and is exigible to tax at 4 percent under the Central Sales Tax Act.

Parties
Appellant: The State of Andhra Pradesh, etc.; Respondent: Modern Proteins Ltd.
Jurisdiction
India
Judgment Date
26 April 1994
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal allowed
Legal Topics
Classification of Goods, Exigibility to Sales Tax, Commercial Parlance Test

Case Brief

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Parties

The State of Andhra Pradesh, etc.

Appellant

Modern Proteins Ltd.

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

  1. 1 Whether groundnut protein flour is a 'deoiled cake' within entry 29 of Schedule I of the Andhra Pradesh General Sales Tax Act, 1957

Ratio Decidendi

Groundnut protein flour is commercially distinct from deoiled cake, intended for human consumption whereas deoiled cake is intended for animal feed. Their commercial identity, use, and market recognition are different, so groundnut protein flour is not 'deoiled cake' within entry 29 of Schedule I of the Andhra Pradesh General Sales Tax Act and is exigible to tax at 4 percent under the Central Sales Tax Act.

Court Disposition

Appeal allowed

Orders

  • Order of High Court set aside
  • Order of Dy. Commissioner, C.T.O. and STAT confirmed