Rate of tax — Notification — Jaljira — Packed masala — Rajasthan Sales Tax Act, 1994, Notification Entry 184, dated 29-3-2001.

The Sales Tax Department filed SLP Nos. 113581 of 2008 and 15883 of 2008 before the SC against the judgment of the Rajasthan High Court holding sale of Jaljira by the dealer taxable @10% under residual Entry 199 being not a masala. The State Government issued Notification from time to time classifying packed masala attracting higher rate of tax. The Deputy Secretary, Finance Department, Government of Rajasthan clarified vide letter dated November 12, 2001 that the term ‘Packed Masala’ used in Entry 184 of Notification dated 29-3-2001, means a masala where two or more ingredients are mixed and sold in packed conditions. Spices sold singly will continue to be taxed as per Entry 82 (at the rate of 4% tax).

Held:

It is settled law that when a particular item is covered by one specified entry, then the revenue is not permitted to travel to the residual entry. There is no doubt that ‘Jaljira’ is a drink. The contents of ‘Jaljira’ are put into water and taken as digestive drink, but when we look into the manner and method of preparation we find that it is a mixture of different spices after grinding and mixing. Therefore, it is nothing but a ‘masala’ packed into packets of different nature and quantity. Accordingly it was held that for all practical purposes, it would come within the Entry 184 being a ‘masala’ and it cannot be said that it would come under the residuary entry as held by the High Court. The judgment of the High Court was set aside and assessment order was restored.