Satish Chandra, C.J. - (1.) In this group of writ petitions the question is if condensed milk is liable to sales tax. There is a constant tussle between the State Government which wants to tax it and the dealers who wish to avoid . it. This problem has come before this Court for the fourth time now.
(2.) On the first occasion, in Nestle's Products (India) Ltd. v. Commissioner of Sales Tax [19631 14 S.T.C. 606 this Court held that condensed milk is not milk within the meaning of Section 4(1) of the U.P. Sales Tax Act, 1948, and, therefore, not exempt from sales tax. Condensed milk is milk product within the meaning of the relevant notification dated 7th June, 1948, and, if it is sold in sealed containers, it is liable to sales tax. The sales tax reference of 1954 was answered in favour of the revenue.
(3.) The view taken in the Nestle's Products' case [1963] 14 S.T.C. 606 was doubted and the matter was referred to a Full Bench in Indodan Milk Products Ltd., Muzaffarnagar v. Commissioner of Sales Tax, U.P. 1973 U.P.T.C. 569 (F.B.) The Full Bench held that condensed milk is milk and so exempt under Section 4(1) of the Sales Tax Act. It was not a milk product. The decision in the Nestle's Products' case [1963] 14 S.T.C. 606 was overruled. The references which related to the years 1964-65 and 1965-66 were answered in favour of the assessee.;