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J U D G M E N T KAPADIA, J.

This civil appeal by grant of special leave petition concerns classification dispute. According to the assessee 'fryums' fall under item No.2 of Part I of Schedule II which refers to 'cooked food' and in which case the rate of tax is 4%. On the other hand, according to the Department the item 'fryums' falls under Part VII of Schedule II to the M.P. Commercial Tax Act, 1994, under which the rate of tax is 8% (earlier it was 6%) The short question, therefore, which arises for determination in this civil appeal is the meaning of the term 'cooked food' in M.P. Commercial Tax Act, 1994. Though the expression 'cooked food' has been defined under Section 2(g) of the said 1994 Act in this civil appeal we are concerned with the Assessment Years 1992-93 and 1993-94. It is made clear that the assessee is a registered dealer under M.P. General Sales Tax Act 1958 and thereafter under M.P. Commercial Tax Act, 1994. It is not in dispute that the assessee has been assessed under the above entries of the 1994 Act. This is because the 1958 Act stood replaced by the 1994 Act and the original assessment made under the 1958 Act have been treated to have been made under the 1994 Act.

On 12th March, 1996 the Assistant Commissioner, Indore, assessed sale of 'fryums' at 8% sales tax under the residuary entry referred to above. He demanded tax of Rs.1.33 lakhs (rounded off) for the Assessment Years 1.4.92 to 31.3.93. The Commissioner of Commercial Tax, in an application made under Section 68 of the 1994 Act held that 'fryums' were neither Namkeen nor 'cooked food' nor 'papad' nor 'cereals', and therefore, they were taxable under the above residual entry of Part VII of Schedule II of the 1994 Act. On 20.6.1997 the Appellate Authority dismissed the appeal. The matter was carried in revision. The revision was also dismissed.

The Assistant Commissioner had assessed the sale of 'fryums' for the subsequent period commencing from 1.4.1993 to 31.3.1994 also under the above residuary entry at 8% and demanded sales tax amounting to Rs.66,202.

Aggrieved by the aforestated decision in respect of the above two years the assessee moved the Madhya Pradesh High Court in Writ Petition under Articles 226/227 of the Constitution praying for a declaration that 'fryums' be held as 'cooked food' liable to tax under Entry IV of Part I of Schedule II of the 1958 Act corresponding to Entry 2 of Part I of Schedule II of the 1994 Act. After hearing both the parties the learned single Judge came to the conclusion that 'fryums' are 'cooked food' liable to be assessed under Entry 2 Part I of Schedule II to the 1994 Act.

In the present case we have quoted the definition of the term 'cooked food'. It is an inclusive definition. It includes sweets, batasha, mishri, shrikhand, rabari, doodhpak, tea and coffee but excludes ice-cream, kulfi, ice-candy, cakes, pastries, biscuits, chocolates, toffees, lozenges and mawa. That the item 'cooked food' is inclusive definition which indicates by illustration what the legislatures intended to mean when it has used the term 'cooked food'. Reading of the above inclusive part of the definition shows that only consumables are sought to be included in the term 'cooked food'. In the case of 'fryums' there is no dispute that the dough/base is a semi-food. There is also no doubt that in the case of 'fryums' a further cooking process was required. It is not in dispute that the 'fryums' came in plastic bags. These 'fryums' were required to be fried depending on the taste of the consumer. In the circumstances we are of the view that 'fryums' were like seviyan . 'Fryums' were required to be fried in edible oil. That oil had to be heated. There was certain process required to be applied before 'fryums' become consumable. In these circumstances the item 'fryums' in the present case will not fall within the term 'cooked food' under Item 2 Part I of Schedule II to the 1994 Act. It will fall under the residuary item "all other goods not included in any part of Schedule I".