1. JUDGMENT [The Judgment of the Court was delivered by Wajihuddin Ahmed, J.] The Petitioner imported a consignment, describing the same as tamarind with seeds, the import being from Bangkok, Thailand. The Customs Examination and Appraisal staff, after examination, said that exemption in the payment of sales tax at the rate of 12% per cent was not admissible to the goods in question because the same were in processed form. On appeal before the Collector'(Appeals), the appellate forum recorded the contentions and the position taken before him by the importer in the under-noted words:- "On the next date fixed for hearing on 13-4-1998 Sheikh Abdul Hafiz, Proprietor of the appellants firm appeared and again stated forcefully that the consignment of tamarind with seeds was not chargeable to sales tax. When asked if the sample drawn at the time of physical examination be sent for laboratory test with a view to determining the fact as to whether the goods were in un- processed form or were processed he stated that he did not want any laboratory test nor he contested the plea of the department that the goods were in processed form. He further stated that even if the goods be in processed shape he did not want to contest it. His point of view was that the goods in question were not imported in bottled, canned or packaged shape, hence the exemption envisaged in Sixth Schedule of the Sales Tax Act, 1990 was available."
2. The Collector rejected the petitioner's plea for exemption of sales tax, recording his conclusion as below:- "I have given due consideration to the version of both the parties. I am of considered view that the exemption from sales tax as envisaged in Sixth Schedule of the Sales Tax Act, 1990 (serial No. 3-11) is available to unprocessed food stuff only including fruits. Tamarind has been classified as one of the fruits under PCT hearing 0813-4010 but no exemption can be claimed if it has not been imported in its natural form. The goods imported by the appellant have been found as having been obtained from Tamarind pods by way of mechanical process and not in their natural unprocessed form."
3. A further appeal taken before the Customs, Excise and Sales tax Appellate Tribunal (Lahore Bench) was dismissed on 4-6-1998, such Tribunal recording its conclusion as below: - "The entry at Serial No. 3(H) of the Sixth Schedule of the Sales Tax Act, 1990 pertains to un- processed food stuff which has not undergone any transformation through manual or mechanical process etc. As to the goods-in-question, it is an admitted fact that these were subjected to mechanical process through tamarind pods. As a result thereof, these fall outside the purview of the generic entry of unprocessed food-stuff referred to above. The stand of the appellants that only those vegetables, fruits, and fruits-juices can be excluded from the generic entry which are bottled, canned or packaged has no nexus with the phraseology used therein and appears to be more of a figment of their imagination and not in the context of any legal parlance."
4. In consequence, the importer preferred C.A. 69 of 1998 before the Lahore High Court, but a Division Bench of that Court on 30-9-1998 declined to interfere and dismissed it, giving rise to the present leave petition.
5. The petitioner claims exemption under Section 13(1) of the Sales Tax Act, 1990 read with the entry at Serial No. 3(ii) of the Sixth Schedule appended with the said Act. These provisions read: "Section 13(1) of the Sales Tax Act, 1990.
6. "13. Exemption. - (1) Notwithstanding the provisions of Section 3, supply of goods or import of goods specified in the Sixth Schedule shall, subject to such conditions as may be specified by the Board, be exempt from tax under this Act."
7. Entry at Serial No. 3(ii) of the Sixth Schedule to the sales Tax Act, 1990.
8. Heading Nos. Of the First Schedule to the Customs Sr. No. Description Act, 1969 (IV of 1969)
9. (1)....................
10. (2)....................
11. (3)......................
12. 2.Unprocessed foodstuff for human consumption which shall mean:-
(ii) all vegetables, fruits and fruit juices whether fresh, frozen or otherwise preserved [e.g., in "cold storage") but excluding fruits, fruit juices and vegetables bottled, canned or packaged;" [1] [2] The above conclusion is strengthened by the fact that tamarind has been imported not in its natural form but as tamarind pods. The word "pods", used as a noun, in its ordinary significance, signifies, usually "a long him case containing seeds that develops from the flowers of various plants, especially peas and beans". This, in turn, would suggest a situation where tamarind pods had been separated from tamarind for the purposes of marketing and sale, implying the use of a process, manual or mechanical, causing a difference ic substance and thus taking away the product from the category of exemption.
13. Our conclusion, therefore, is that the orders impugned in this leave petition are unexceptionable and do not call for any interference. The petition is dismissed and leave declined.