Holding

The Court held that sugar manufacturing does not fall within "processing of vegetable products" under Entry 15 of Schedule I of the Water (Prevention and Control of Pollution) Cess Act, 1977, and therefore the water cess cannot be levied on sugar mills or on alcohol made from molasses.

Summary

The Supreme Court examined a batch of appeals, writ petitions and transferred cases concerning notices issued to sugar manufacturers demanding water cess under the Water (Prevention and Control of Pollution) Cess Act, 1977. The central issue was whether the sugar manufacturing industry fell within Entry 15 of Schedule I, which covers "processing of animal or vegetable products". The Court interpreted the word "vegetable" in its ordinary, non‑botanical sense and held that sugarcane is not a vegetable; consequently, sugar production is not "processing of vegetable products". It further distinguished "processing" from "manufacture" and found that the manufacture of alcohol from molasses also does not qualify. As the Cess Act is a fiscal statute, the Court applied a literal construction, rejecting any implication‑based inclusion. The appeals were allowed, the water cess was held not applicable to sugar mills or related alcohol production, and the rule nisi was made absolute.

Issues considered

Whether sugar manufacturing industry is covered by Entry 15 of Schedule I of the Water (Prevention and Control of Pollution) Cess Act, 1977.
Whether the term "vegetable" in Entry 15 should be given its botanical meaning or its meaning in common parlance.
Whether "processing of vegetable products" includes the manufacture of sugar and alcohol from molasses.
Whether a fiscal enactment like the Cess Act must be interpreted literally without implication.
Whether the levy of water cess on sugar mills and on alcohol produced from molasses is lawful.

Legislation cited

Agricultural and Processed Food Products Export Development Authority Acts. 2(g)
Marine Product Export Development Authority Acts. 3(1)
Water (Prevention and Pollution and Control of Pollution) Cess Acts. 2(c), s. 3, s. Schedule I Entry 15
Water (Prevention of Pollution) Act

Subjects

water cesspollution controlstatutory interpretationvegetable definitionprocessing vs manufacturesugar industryfiscal legislationSchedule I Entry 15common parlancebotanical meaning

Judgment

SARASWATI SUGAR MILLS A
v.
>· HARYANA STATE BOARD AND ORS.

OC1'0BER 22, 1991

[A.M. AHMADI AND V. RAMASWAMI, JJ.) B

Water (Preventio11 and Control of Pollution) Cess Act, 1977:

Sections 2(c), 3 and Schedule I, Entry 15--'Processing of a11imal or
vegetable product industry'-Sugar manufacturing i11dustry--Whetlier covered C
by Entry 15, Schedule I-Sugar Cane-Whether a Vegetable.

Interpretation of Statutes:

Co11stntctio11 of words and meaning to be given- Nom1al/y depends
on the nature, scope and purpose of statute. D

Words and Phrases: "Vegetable", "Processi11g"-Meani11g of
Section 3 of the Water (Prevention of Pollution and Control) Cess
Act, 1977 provided that water cess was payable by every person carrying on
any specified industry and every local authority, for the purposes of the E
Water (Prevention and Control of Pollution) Act, 1974. "Specified
industry" was defined in the Act meaning any industry specified in
Schedule I. There were 15 items under Schedule I, including "processing of
animal or vegetable products industry", under Entry 15.
F
The question for consideration in the batch of appeals, writ petitions
and transferred cases arising out of the notices issued by the concerned
assessing authorities demanding water cess from the sugar manufacturers
was whether sugar manufacturing industry fell under Entry 15 of Schedule
I of the Water (Prevention and Control of Pollution) Cess Act, 1977.
G
Disposing of the appeals, writ petitions and transferred cases, this
Court,

HELD: 1. In the context in which the word 'vegetable' is used in
Entry 15, Schedule I of the \Yater (Prevention and Control of Pollution)
Cess Act, 19771 'vegetable product' means product of or made ot' or out of H
523
524 SUPREME COURT REPORTS (1991) SUPP. 1 S. C.R.

A vegetable. 'Vegetables' as understood in common parlance are not
products <>f manufacture unless it is said that agriculture is an industry
for certain purposes and vegetables are products of that industry. In ord~r
to bring an industry within any of the entries in Schedule I it bas to be seen
what is the end product produced by that industry. Sugarcane is not a
.B vegetable though it may be an agricultural product. If the botanic meaning
of vegetable as referring to any and every kind of plant life is to be given
then some of the industries listed in Schedule I like Paper Industry and
Textile Industry and even Chemical Industry which are covered by other
entries could also be brought within Entry 15. The word 'vegetable' in the
context does not attract the botanic meaning. The sugar manufacturing
C industry does not, therefore, come within Entry 15 of Schedule I of the
Cess Act. Consequently, the manufacture of alcohol from molasses, which
is a by product of manufacture of sugar, could not be considered to be an
industry within Entry 15 of Schedule I. [534 C-E, F]

D . 2.1 Tbe word 'vegetable' has been defined in many ways. From the
botanic point of view 'vegetable' may include any plant but in common
parlance it is understood as referred to edible plants or parts of edible
plants. Unless the botanical meaning is giveu to the word 'vegetable' it is
not possible to conclude sugarcane as vegetable. [528 CJ

E 2.2 Pollution Act may be a regulating Act, but Cess Act is a fiscal
enactment. Therefore, the Court has to look merely at what is clearly said.
There is no room for any intendment and no room for bringing within the
provision of the Cess Act anything by implication. [533 E,F] )c-

State of West Bengal & Ors. v. Washi A/11red Etc. AIR 1977 SC 1638;
F Member-Secretary, Andlzra Pradesh State Board for Prevention and Control
./ of Water Pollution v.Andhra Pradesh Rayons Ltd. and others, [1989) 1 SCC
44,M/s Motipur Zamindary Co. (P) Ltd. v. The State of Bi/tar, (1962) Suppl.
1 SCR 498 and Rajastltan State Electricity Board v. 17ie Cess Appellate
Committee & Anr., JT 1990 4 SC 123, referred to.
G
World Book, Concise Oxford Dictionary, 3rd Ed. p. 1365, Webster's
International Dictionary and Encyclopaedia Brittannica, Vol. 23, referred to.

2.3 Construction of words and the meaning to be given for -such
words shall normally depend on the nature, scope and purpose of the
H statute in which it is occurring and to the fitness of the matter to the
SUGARMILLSv. SfATEBOARD[V.RAMASWAMI,J.) 525

.>.
statute. The meaning given to .the same word occurring in a social security A
measure or a regulating enactment may not be apposite or appropriate
1flien the same word is interpreted with reference to a taxing state. The
Cess Act is a fiscal enactment. [534 BJ

3.1. Processing of vegetable products industry is normally
understood in the sense that it relates to processing of vegetables, which B
even after processing retain its character as vegetable. [530 H,531A]

3.2 Processing as generally understood in marine, agricultural and
food products industries is an action, operation or method of treatment
applying it to something. It is refining, development, preparation or
converting of material especially that in a raw state into marketable form.
c
In manufacture something is brought into existence, which is different
from that originally existed in the sense that the thing produced is by itself
a commercially different commodity, whereas in the case of processing it is
not necessary to produce a commercially different article. [531 C,D]
D
j 3.3 Processing essentially effectuates a change in form, cantour,
physical appearance or chemical combination or otherwise by artificial or
natural means and in its more complicated form involves progressive
action in performing, producing or making something. [533 A,B]

CST v. A.R. Aladin, AIR 1964 Guj. 27. Addi. CIT v. Farrukhabad E
Cold, Storage, [1977) 2 ITJ 202; Union of India v. Delhi Cloth and General
Mills, AIR 1963 SC 79 and Com Products Refining Co. v. Federal Trade
Commission, CCA.7. 144 F .2d 211, referred to.

_CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4i.89 of F
1991 etc. etc. ·

From the Judgment and Order dated 25.8.1989 of the Punjab &
Haryana High Court in Civil Writ Petition No. 2635of1989.

Soli J. Sorabjee, Krishnamurthy Iyer, Bishamber Lal Khanna, H.K.
Puri, Ms. Geetanjali Mohan, Ms. AK. Verma, P.R. Ramasesh, Mahabir
G
Singh, R. Mohan and Ayyam Perumal for the appearing parties.

The Judgment of the Court was deliv~red by

V. RAMASWAMI, J. Leave granted in all Special Leave Petitions. H
526 .SUPREME COURT REPORTS (1991] SUPP. 1 S. C.R.

-A In this batch of civil appeals, writ petition and transferred case, a
common question of law arises as to whether the industries which manufac-
ture sugar from sugar cane are covered by Entry 15 of Schedule I to the
Water (Prevention and Control of Pollution Cess Act, 1977 (Central Act 36
of 19'n} (hereinafter caHed the 'Cess Act').

B 0.-iginally the Water (Prevention and Control of Pollution Act), 1974
(heremafter called the Act) was enacted by the Parliament under Article
252 of the Constitution with a view to control the pollution of rivers and
streams which has assumed considerable importance and urgency in recent ~ -
years <as a result of increasing industrialisation and urbanisation. The Act is
intended to ensure that the domestic and industrial affluence are not al-
C lowed to be discharged into water coarse.s without adequate treatment.
This Act is now in force in almost all States and in all Union Territories.
The Act provides for the constitution of a Central Bc;ard by the Central
Govern.ment and State Boards by the State Governments concerned for the
prevention and control of water pollution. There are also certain provisions
relating to constitution of joint boards the details of which need not detain
D us. The Act sets out in detail the functions and power~ of these Boards.
Chapter V1 of the Act rnquires the Central Government and the State ~
Governments to provide funds to the Central Board and the State Boards
respectively for implementing the provisions of the Act. The Cess Act 36 of
1977 provides for levy of cess on water consumed by persons carrying on
certain industries and by the iocal authorities with a view to augment the
E resources of the Central Board and the State Boards constituted for the
prevention and control of water pollution. Section 3 of the Cess Act which
may be termed as the charging section states that "there shall be levied and
collected <t cess for the purposes of the Water (Prevention and Control of ~-
Pollution) Act, 1974 and utilisation thereunder''. The cess is payable by
every person carrying on any t.pecified industry and every local authority
F and is calculated on the basis of water consumed by such person or local
authority as the case may be for any of the purposes specified in column i
of Schedule II to the Act, at such rate not exceeding the rates specified in
the corresponding Entry in column II thereof as the Central Govt;rnment
may by notification in the Official Gazette from time to timt:, specify.
"Specified industl)1' is defined in the Act as meaning any industry specified
G in Schedule I. There are 15 entries in Schedule I and they read as follows:
SCHEDULE I

'(See Section 2(c))
1. Ferrous mf!tallurgical industry.
H
SUGAR MILLS v. SfATE BOARD [ V. RAMASWAMI, J.) 527

2. Non-ferrous mr.tallurgical industry. A
3. Mining industry.

4. Ore processing industry.

5. Petroleum industry.
B
6. Petro-chemical industry.

7. Chemical industry.

8. Ceramic industry.

9. Cement industry.
c
10. Textile industry.

11. Paper industry.

12. Fertilizer industry. D

13. Coal (including coke) industry.

14. Power (thermal and diesel) generatir.g industry.

15. Processing of animal or vegetable products industry. E
The concerned assessing authorities have in all the cases under con-
sideration issued notices demanding water cess from the sugar manufac-
turers on the ground tha.t this industry falls under item 15 "processing of
animal or vegetable products industry". The. Punjab and Haryana High
Court and the Allahabad High Court have taken the view that the sugar F
manufacturing industries would come within Entry 15 as "processing
vegetable products industry". On the other hand the Andhra Pradesh High
Court and Patna High Court have taken the view that sugar manufacturing
industries would not come within Entry 15 of the 1st Schedule. A writ
petition which was filed in the High Court of Karnataka, Bangalore, by one
of the sugar mills in Karnataka raising similar question has been withdrawn G
to this Com t in transfer petition No. 276 of 1984 to be dealt with along with
other appeals raising identical question. Similarly another writ peti~ion has
been withdrawn from the Allahabad High Court in Transfer Petition No.
277 of 1984 to be dealt with along with this group of cases.

The object of the Act is to control the water pollution and to ensure H
528 SUPREME COURT REPORTS (1991) SUPP. 1 S. C.R.

A that industrial affluents are not allowed to be discharged into the water
coarses without adequate treatment .. The Cess Act is not an enactment to
regulate and control pollution but a fiscal measure to raise revenue for
a~enting the resources of the Pollution Control Boards. The levy and
oollection of cess provided under the Cess Act is on water consumed by
persons carrying on the industries specified in the Schedule. The Cess is
levied on the person carrying on the specified industry. The question is
B whether industries manufacturing sugar is covered by Entry 15 that is
"processing of vegetable product· industry".

From the botanic point of view 'vegetable' may include any plant but
in common parlance it is understood as referring to edible plants or parts
of edible plants. The word 'vegetable' has been defmed in many ways. In
C the World Book it is defmed as follows:

"In the usual sense, the word vegetable is applied to those !.
plants whose leaves, stalks, roots or tubers are used for food,
such as lettuce, asparagus, cabbage, beet and turnip. It also
includes several plants whose fruits are the edible portions, as
D peas, beans, melons and tomatoes."

In the Concise Oxford Dictionary, 3rd Ed. p. 1365, it is defined as:

"Plant, esp. herbaceous plant, used for culinary purposes or for
feeding cattle, e.g. cabbage, potato, turnip bean."
E
Again in Webster's International Dictionary, vegetable is defmed as:

"A plant used or cultivated for food for man or domestic
animals, as the cabbage, turnip, potato, bean, dandelion, etc.,
also the edible part of such a plant, as prepared for market or
F the table. Vegetables and fruits are sometimes loosely distin-
guished by the used need of cooking -the former or the use of
man, while the latter may be eaten raw; but the distinction
often fails, as in the case of quinces, barberries, and other
fruits, and_ lettuce, celery, and other vegetable. Tomatoes if
cooked are vegetables, if eaten raw are fruit."
G
In the Encyclopaedie Britannica, vol. 23, 'vegetable' is defined as:

"~ general term used as an adjective in referring to any kind of
plant life or plant product, viz. 'vegetable matter'. More com-
monly and specifically, in common language, the word is used
H
SUGAR MILLS v. SfATE BOARD [ V. RAMASWAMI, J.) . 529
-
as a noun in referring to those generally herbaceous plants or A
any parts of such plants as are eaten by man. The edible' por-
tions of many plants considered as vegetables are in a botanical
sense, fruits. The common distinction between fruits and
vegetables is often indefinite and confusing, since it is based
generally on how the plant or plant part is used rather than on
what it is." B
This Court in State of West Bengal & Ors. v. Washi Ahmed etc., AIR
- -<11 1977 SC 1638 with reference to the meaning of the word 'vegetable' in Item
(6) of Schedule I to the Bengal Finance (Sales Tax) Act, 1941 held:·

"That the word 'vegetable' in Item (6) of Schedule I to the Act C
must be construed as understood in common parlance and it
must be given its popular sense ~o.ning 'that sense which
people conversant with the subject-matter with which the
statute is dealing would attribute to it' and so construed, it
denotes those classes of vegetables which are grown in a
kitchen garden or in a farm and are used for the table." D
The interpretation of one of the entries in Schedule I to the Cess Act
came up for consideration in Member-Secretary, Andhra Pradesh State
Board for Prevention and Control of Water Pollution v. Andlrra Pradesh
Rayons Ltd. and others, [1989) 1 SCC 44. The question for consideration
was whether manufacturing of rayon grade pulp a base material for E·
manufacturing of synthetics or manmade fabrics is an industry as men-
tioned in Schedule I to the Cess Act. It was held:

"Whether a particular industry is an industry as covered in
Schedule I of the Act, it has to be judged normally by what that
industry produces mainly. Every industry carries out multi- F
farious activities to reach its goal through various multifarious
methods. Whether a particular industry falls within the realm
of taxation, must be judged by the predominant purpose and
process and not by any ancillary or incidental process carried
on by a particular industry in running its business."
G
This Court also observed:

"It has to be borne in mind that this Act with which we are
concerned is an Act imposing liability for cess. The Act is fiscal
in nature. The Act must, therefore, be strictly construed in
order to find out whether a liability is fastened on a particular H
530 SUPREME COURT REPOin'S. (1991) SUPP. 1 S. C. R.

A industry. The subject iS not to be taxed without clear words for
that purpose, and al&o that every Act of Parliament must be
read according to its natural construction of words. See the
observations In Re. Nicklethwait, 1985 (11) Ex. 4~2, 456. Also
see the observations in Tenant. v. Smith 1892 AC 150 and Lord
Halsbury's observations at page 154. See also the observations
B of Lord Simonds in St. Aubyn v. A.G. 1951 (2) All. ER, 473,
485. Justice Rowlatt of England said a long time ago, that in a
taxing Act one has to look merely at what is clearly said. There
is no room for any intendment. There is no equity about a tax.
There is no presumption as to tax. Nothing is to be read in,
nothing is to be implied. One has to look fairly at the language
c used. See the observations in Cape Brandy Syndicate v. /RC,
(1921) 1 KB 64, 71. This Court has also reiterated the same
view in Gursahai Saigal v. CIT, (1963) 3 SCR 892, CIT v. Mr. P.
Finn, Muar, (1965) 1 SCR 815 Controller of Estate duty v. Kan-
ti/a/ Trikamlal, (1976) 4 SCC 643. .

D The question as to what is covered must be found out from the
language according to its natural meaning fairly and squarely ~
read. See the observations in /RC v. Duke of Westnrinster,
((1963) AC 1, 24) and of this Court in A. V. Fernandez v. State of
Kera/a (1957) SCR 837. Justice Krishna Iyer of this Court in
Mmtand Dairy & Fann v. Union of India (1975) 4 SCC 313 has
E observed that taxing consideration may stem from administra-
tive experience and other factors of life and not artistic
visualisation or neat logic and so the literal, though pedestrain,
interpretation must prevail." ::.:-

This Court considered the question as to whether sugarcane is green
F vegetable with reference to an exemption given under Sales Tax Enactment
in the decision in M/s. Motipur Zamindary Co. (P) Ltd. v. The State of Bihar
(1962) Supp. 1 SCR 498. This CoUrt quoted with the approval a passage
from the judgment of the Nagpur High Court in Madhya Pradesh Pan
Merchants Association v. State of Madhya Pradesh (1956 (7) S.T.C. 99)
G wherein it was held "the word vegetable in taxing statutes is to be under-
stood as in common parlance that is denoting class of vegetables which are
grown in a kitchen garden or in a farm and are used for the table". It was
further held that sugarcane is normally considered to be a grass specie and
it would not fall within the definition of words green vegetable.

The use of the word processing is also significant. Processing of
H
SUGARMILLSv. SI'ATEBOARD(V. RAMASWAMI,J.) 531

vegetable products industry are normally understood in the sense they re- A
late proce5;)ing of vegetables which even after processing retain its charac-
ter as vegetable. ·

Processing: Section 3(1), Marine Product Export Development
Authority Act, 1972 defines processing in relation to marine products, as
including the preservation of such products as canning, freezing, drying, B
· salting, smoking, peeling or filleting or any other method of processing
which the authority 1aade by notification in the Gazette of India, specified
in this· behalf. Section 2(g) of the Agricultural and Processed Food
Products Export Development Authority Act, 1985 defines processing in
relation to scheduled products as including the process of preservation of
such products such as canning, freezing, drying, salting, smoking, peeling c
or filleting and any 'Other methods of processing which the authority made
by notification in the official Gazette specified in this behalf. Thus process-
ing as generally understood in marine, agricultural and ·food products in-
dustries is an action, operation or method of treatment applying it to
something. It is refining, development, preparation or converting of
material especially that in a raw state into marketable form. It would be D
interesting to note that this Act contains a Schedule of "the agricultural or
processed food products" which are to be governed by the Act which reads
as follows:

THE SCHEDULE
E
(See Section 2(i))
1. Fruits, vegetables and their products.
I

2. Meat and meat products.

3. Poultry and poultry products. F
4. Dairy products.

5. Confectionary, biscuits and bakery products.

6. Honey, jaggery and sugar products.
G
7. Cocoa and its products, chocolates of all kinds.

8. Alcoholic and non-alcoholic beverages.

9. Cereal products.
H
532. SUPREME COURT REPORTS (1991) SUPP. 1 S. C.R.

A 10. Cashewnuts, groundnuts, peanuts and walnut~.

U. Pickles, chutneys and papads.

12. Guar Gum.

13. Floriculture and floriculture products.
B
14. Herbal and medicinal plants.

In CST v. A.R. Alla.din, AIR ·1964 Guj. 27 the expression "who
processes any goods" in the Bombay Sales Tax was held to refer to the
subjecting of any goods to a treatment or process. In Addi. CIT v. Farruk-
C habad Cold Storage, 1977 (2) ITJ 202 held that processing of goods means
that the goods must be adopted for a particular use. The variety of acts
performed in respect of goods or their subjection to a process need not be
such as may lead to the production of any new article. The act of subjecting ·
goods to a particular temperature for a long period of time as in cold
storage amounts to processing of goods. On the other hand manuf~cture is
D a transformation of an article which is commercially different from the one
which is converted. The essence of manufacture is the change of one object
to another for the purpose of making it marketable. In Union of India v.
Delhi Cloth and General Mills, AIR 1963 SC 79 this Court pointed out:

"The word 'manufacture' used as a verb is generally under-
E stood to mean as bringing into existence a new substance and
does not mean 'merely' to produce some change in a sub-
stance, however minor in consequence, th~ change may be."

In the same decision the following passage from the Permanent Edi-
tion of Words and Phrases from an American Judgment was quoted with
F approval:

"Manufacture implies a change but every change is not
manufacture, and yet every change of an article is the result of
treatment, labour and manipulation. But something more is
necessary and there must be transformation, a new and dif-
G ferent article must emerges having a distinctive name, charac-
ter or use."

.The essential point thus is that in manufacture something is brought
into"e~stence which is different from that originally existed in the sense
that the thing produced is by itself a commercially different commodity
H
SUGAR MILLS v. SI'ATE BOARD [ V. RAMASWAMI, J.) 533

whereas in the case of processing it iS nof necessary to produce a comm.er- A
" --..+ cially different article.

Processing essentially effectuates a change in form, contour, ph:fsical
appearance or chemical combination or otherwise by artificial or natural
means and in its more complicated form involves progressive action in
performing, producing or making something. Vide Com Products Refining B
Co. v. Federal Trade Commission, CCA. 7, 144 F.2d 211.

~- ~ In the decisions under appeal, the Allahabad High Court held that
sugar mills will come within the meaning of 'processing vegetable products
industry' in Entry 15 on the ground that the word 'vegetable' has been used
in opposition to the expression 'animal' and that it could not be given the
meaning of vegetables which are kept on the dining tables for dinner pur-
c
poses, and it has a wider amplitude. It .was further of the view that in
interpreting the word 'vegetable' one has to keep in mind the object for
which the Cess Act was made. The learned Judges then stated that sugar
industry is one of the main source of causing water pollution and since the
object of the Pollution ACt and the Cess Act were intended to control D
1- water pollution and since the entries are to be given a wider meaning sugar
industry would be covered by the Act.

The Punjab & Haryana High Court also took a similar line of reason-
ing and said that 'vegetable products' essentially mean what belongs to the
plant kingdom as op-posed to the animal kingdom. In another words the E
word 'vegetable' has been used in contra-distinction to the word 'animal'.
Though the learned Judges were not prepared.to hold that sugar cane is
vegetable, the word 'product' gives a definite colour, meaning thereby all
>-----/
that belongs to the world of plants would come within the entry.

We are unable to appreciate the reasonings of the learned judges. F
Pollution Act may be a regulating Act but Cess Act is a fiscal enactment, as
is held by this Court in Member Secretary, Andhra Pradesh State Board for
Prevention and Cpntrol of Water Pollution v. Andlira Pradesh Rayons Ltd.
and Others (supra) and Rajasthan State Electricity Board v. The Cess Appel-
late Committee~ Anr., JT 1990 (4) SC 123. Therefore we have to look
merely at what is clearly said. There is no room for any intendnient and G
'+ there is no room for bringing within the provision of the Act anything by
implication. Unless we give the botanical meaning to the word 'vegetable' it
is not possible to conclude sugar cane as vegetable.

The Patna High Cou.rt in Civil Writ Jurisdiction Case Nos. 4413 of
1981 and 2346 of 1983 Mis Champaran Sugar Co. Ltd. v. State of Bihar & H
•

534 SUPREME COURT REPORTS (1991) SUPP. 1 S. C.R.

A Ors. held that sugar manufacturing industry would not fall under Entry 15
Qf Schedule I. The Andhra Pradesh High Court also seems to be as the
same view and it had dismissed a Writ Petition without a speaking order.
Construction of words and the meaning to be. given for such words
shall normally depend on the nature, scope and purpose of the statute in
which it is occurring and to the fitness of the matter to the statute. The
B meaning given to the same word occurring in a- social security measure or a
regulating enactment may not J>e apposite or appropriate when the same
~---·
word is interpreted with reference to a taxing statute. The Cess Act is a
fiscal enactment. In the ·context in which the word 'vegetable' is used in
Entry 15 'vegetable product' means product of or made of or out of
vegetable. 'Vegetables' as understood in common parlance are not
C products of manufacture unless we say that agriculture is an industry for
certain purposes and vegetables are products of that industry. In order to
bring.an industry within any of the entires in Schedule I it has to be seen
what is the end product produce<! by that industry. Sugar cane is not a
vegetable though it may be an agricultural product. If the botanic meaning
D of vegetable as referring to any and every kind of plant life is to be given
then some of the industries listed in Schedule I like Paper Industry and
Textile Industry and even chemical industry which are covered by other
entries could also be brought within Entry 15. The word vegetable in the
context does not attract the botanic meaning. The sugar manufacturing
industry do not, therefore, come within Entry 15 of Schedule I of the Cess Act.
E In Civil Appeal (arising out of Special Leave Petition No. 814 of
1990) the appellant is Haryana Distillery who purchases molasses which is
a by-product of the ·manufacture of sugar and manufactures alchohol.
Manufacture of alchohol was held by the High Court to oome within Entry
15 of Schedule I as processing agricultural product industry. We have held
already that the industry manufacturing sugar itself is not an industry
F within the meaning of Entry 15 and a fortiori the manufacture of aleohol
from molasses could not be considered to be an industry within Entry 15 of
Schedule I.

In the result we allow Civil Appeals (arising out of SLP Nos. 15828 of
1989, 7496 of 1989, 778, 814, 830, 1286, 1433of1990 and SLP No.-------------
G of 1991 entitled Upper Doab Sugar Mills Ltd & Anr. v. Union of India & Ors.
Writ Petition No. 77of1990, and Transfer Ca5e (C) Nos. 6of1986 & 91 of
1989 and dismiss Civil Appeals (arising out of SLP Nos. 9558-62 of 1988)
and the Rule Nisi is made absolute.

N.P.V. Appeals disposed of.