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Judgment
Jeevan Reddy, J.—The only question that arises in this writ petition is whether "vermicelli" manufactured and sold by the petitioner under the trade name "Bambino vermicelli" falls under entry 129A of the First Schedule to the Andhra Pradesh General Sales Tax Act, 1957.
Previously, i.e., before the introduction of entry 129A, a controversy had arisen when the department sought to treat these goods as general goods - different from "maida". "Maida" is taxable under entry 60 of the First Schedule. It was held in State of Andhra Pradesh Vs. Karnatakam Govindayya Setty and Sons, , that "vermicelli" is nothing but "maida" drawn into thin strands. It was, therefore, held that the said goods cannot be taxed as general goods. Since the rendering of the said decision, entry 129A has been introduced by G.O.Ms. No. 630, Revenue dated May 30, 1986, with effect from June 1, 1986. (The said G.O. has later been replaced by Act 19 of 1986). Entry 129A reads as follows :
"Articles of processed food (other than those specifically mentioned elsewhere) prepared wholly or mainly from flour of gram, cereals, pulses or oil-seeds."
The question that falls for our consideration is whether "vermicelli" can be called "processed food". The contention of the learned counsel for the petitioner is twofold, viz., (1) that merely because some sort of process is undergone, it cannot be said to be processed; the process must be an elaborate one, (2) that in any event, vermicelli cannot be called "food".
We are inclined to agree with the learned counsel on the second contention urged by him. We agree with him that "vermicelli" sold by the petitioner under the trade name "Bambino vermicelli" is not food. Food, ordinarily connotes - what can be readily eaten. Ordinarily speaking, "Bambino vermicelli" is not consumed straightway. It is used as one of the ingredients either in preparing a sweet or upma or pakoda or any other such or similar preparations. In view of this, we find it difficult to say that "vermicelli" is food. It is only an ingredient which goes into preparing a food. In this view of the matter, it is unnecessary for us to go into the first contention urged by Mr. Venkatarama Reddy, viz., whether "vermicelli" undergoes processing or whether the processing should be an elaborate one.
For the above reasons, we hold that "vermicelli" manufactured and sold by the petitioner under the trade name "Bambino vermicelli" cannot be taxed under entry 129A. It is only "maida" and nothing else, taxable under entry 60, as held in State of Andhra Pradesh Vs. Karnatakam Govindayya Setty and Sons, .
In the result, we allow this writ petition and direct the assessments to be modified accordingly. No costs. Advocate''s fee Rs. 150.
Writ petition allowed.