JUDGMENT
V.K. Bali, J.
1. The sole question that needs adjudication in the present writ filed by Veer Oil and General Mills under Article 226 of the Constitution of India is as to whether the petitioner which is concededly engaged in extracting edible oil from Sunflower Seed should be levied octroi as per entry 24 or 25 of the schedule that came into being by virtue of notification issued by the Government under section 61(1) of the Punjab Municipal Act, 1911. It may be clarified at this stage that the notification dated 9th of December 1960 was initially issued by the Punjab Government and as per pleadings the same has been adopted by the Haryana Government. Before the matter may proceed further, it shall be useful to immediate notice the two entries mentioned at Sr. Nos. 24 and 25. The same read as follows:
“24. Seeds of vegetables, fruits flowers, ornamental shrubs and trees.”
“25. Cotton Seeds, Oil seeds and fodder seeds and Seeds of green manuring crops like san hemp.”
It may be mentioned here that whereas octroi payable under entry No. 24 is 1.40 rupees per 100 kgs., the same is only 0.18 P in the other entry i.e. entry No. 25.
2. As mentioned above, the fact that the petitioner is extracting edible oil from the seeds of sunflower remained undisputed either in the pleadings or during the course of arguments.
3. Mr. Aakash Jain, learned Counsel representing the petitioner in my view rightly contends that it is a use for which a particular item is put, which should be relevant consideration for determining as to under which entry it falls and inasmuch as the sunflower seeds are being actually used by the petitioner for extracting edible oil, so the same has to be assessed for octroi under item 25 of the Schedule. All that has been mentioned in the written statement is that octroi is being charged as envisaged under item No. 24 of the schedule attached with the notification dated 9th December, 1960 as the sunflower seeds fall within the ambit of item No.24 and not under item No.25.
4. In recent times the crop of sunflower is grown by the farmers in a big way entirely for the reason that the sunflower contains seeds from which oil can be extracted. This crop is not grown to have ornamental or other kind of flowers. It is, however a different matter that alongwith the seeds, there also appear flowers. However, concededly the crop is grown for the entire objective of obtaining seeds from which oil is extracted ever since. This crop is not being used for any other purpose. If the commodity satisfies the definition which is given by the Legislature to the words ‘oil’ seeds’, it has to be termed as oil-seeds within the said provision. It is clear from the reading of entry 25 that all kinds of oilseeds are included therein and concededly it is only the seeds of the sunflower that the petitioner is bringing in its premises for oil extraction. Mr. Jain has brought to my notice section 14 of the General Sales Tax. Act, 1956. Sub clause (vi) of section 14 and entry (ix) therein is with regard to sunflower (Helianthus anus). It further supports the contention of Mr. Jain that the sunflower is not only primarily but essentially used for the seeds therein for extracting the oil. In Avadh Sugar Mills v. S.T. Officer,
A. I. R. 1973 Supreme Court 2440, the Apex Court was dealing with the question as to whether the groundnut was oil seeds. After observing that the petitioner an the said case had purchased groundnut mostly from cultivators for the manufacture of oil and there was no doubt that he purchased groundnut for the purpose of manufacturing oil, it was observed as follows:-
“A seed is one which germinates. It is not disputed that the groundnut germinates. Hence it is undoubtedly seed. The next question is whether it is generally used for the manufacture of oil. Here again, there can hardly be any doubt that groundnut is mostly used for manufacture of groundnut oil which is used in the manufacture of Dalda and other cooking media, Groundnut is one of the items which is mostly used in this country for the manufacture of cooking media.”
The Division Bench of Mysore High Court in Kasturi Seshagiri Pal’ Co. v. Dys
Commr., AIR 1962 Mysore 1 while dealing with the coconut oil seeds observed as under:-
“It is common knowledge and that fact is also admitted by the learned Government pleader that the unit of reproduction of the coconut plant which is admittedly a flowering plant, is the coconut with its shell and husk and that it is such coconut when plated that becomes capable developing into another coconut plant. That being so, it is clear that a coconut a seed and since oil can be extracted from coconut, it is an oil seed within the meaning of that expression occurring in S.14 (vi) of the Central Sales Tax Act.”
A single Bench of Kerala High Court in Hamsa Haji v. S.T. Officer,3 A.I.R. 1968 Kerala 193 while dealing with case of mustard seed held:-
“The Legislature itself has in clear terms stated in the above section what oilseeds are. That being so no question arises as to in what way they are understood in common parlance. If a commodity satisfies the definition, which the Legislature has given to the word ‘oil-seeds, it is an oil-seed within the meaning of the said provision.”
5. In view of the discussion made above, the petitioner succeeds in his cause. Consequently, a writ is issued directing respondent-Municipal Committee to charge octroi from the petitioner under item 25 dealing with cotton seeds, oil seeds of green manuring crops like san hemp and not under item 24 dealing with seeds of vegetables, fruits, flowers, ornamental shrubs and trees and accordingly charge octroi from the petitioner. No order as to costs.