1984 (4) TMI 264 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of tax exemption notification for cattle feed.
2. Whether the mixture of maize with rice bran and molasses qualifies for exemption.
3. Impact of exemption of individual components on the entire mixture.

Analysis:
1. The primary issue in this tax revision case is the interpretation of a tax exemption notification for cattle feed under Notification No. II(1) Commercial Taxes and Religious Endowments 316/79 dated 12th April, 1979. The notification exempts specific cattle feed items like hay, straw, rice bran, husk, and dust of pulses and grams, excluding certain items. The assessee claimed exemption for selling a mixture of maize with rice bran and molasses, arguing it qualifies as cattle feed. However, the court held that the exemption under the notification is limited to the specified items and does not include maize or mixtures containing maize. Therefore, the mixture sold does not fall under the exemption provided in the notification.

2. The second issue raised by the assessee was whether the sale of maize itself is exempted under Notification No. 89 of 1970 dated 14th March, 1970, and if so, whether the mixture of maize with rice bran should also be considered exempt. The court examined the said notification and found that it exempts products of millets like rice, flour, brokens, and bran of certain millets, including maize bran, but not maize itself. Since the mixture sold contained maize and not maize bran, which was the exempted component, the court concluded that the mixture does not qualify for exemption. Therefore, the argument that exemption of individual components extends to the entire mixture was rejected by the court.

3. In conclusion, the court upheld the decision of the Tribunal, stating that the mixture of maize with rice bran and molasses is not eligible for exemption under the relevant notifications. The court emphasized that the specific items exempted under the notifications do not include maize or mixtures containing maize. Therefore, the tax revision case filed by the assessee was dismissed, affirming the Tribunal's decision.