1985 (8) TMI 348 - HC - VAT and Sales Tax

Summary

Issues: Interpretation of entry 9 of the Schedule under the Rajasthan Sales Tax Act, 1954 regarding exemption of gowar churi or korma from tax.

The judgment delivered by the Rajasthan High Court involved a challenge to the order of the Board of Revenue regarding the taxability of gowar churi or korma under entry 9 of the Schedule appended to the Rajasthan Sales Tax Act, 1954. The petitioner contended that gowar churi should be exempt as it falls under the category of cattle feed, which is exempt from tax. The Board had relied on a notification specifying the tax rate on gowar in all its forms, including gowar churi. The Court analyzed the relevant legal provisions, including sections 3, 4, and 5 of the Act, to determine the scope of exemption under entry 9. It referred to previous decisions and concluded that gowar churi is distinct from gowar and qualifies for exemption as cattle feed under entry 9, despite the notification specifying tax rates on gowar. The Court emphasized the separate operation of sections 4 and 5 of the Act and held that the notification does not override the exemption provided under entry 9 for gowar churi or korma. Consequently, the Court allowed the revision, setting aside the Board's order and ruling that gowar churi or korma is exempt from tax under entry 9 of the Schedule to the Act.

In analyzing the issues, the Court considered the interpretation of entry 9 of the Schedule under the Rajasthan Sales Tax Act, 1954. It examined whether gowar churi or korma should be exempt from tax under this entry, which pertains to cattle feed. The Court assessed the arguments presented by the petitioner and the sales tax department regarding the applicability of the exemption and the impact of a notification specifying tax rates on gowar. The Court scrutinized the legal provisions of the Act, including sections 3, 4, and 5, to determine the correct interpretation of the exemption under entry 9.

The Court referred to previous decisions and legal principles to support its interpretation of the exemption provision. It highlighted the distinction between gowar and gowar churi, emphasizing that gowar churi qualifies as cattle feed and should be exempt from tax under entry 9. The Court also discussed the separate functions of sections 4 and 5 of the Act, emphasizing that the notification specifying tax rates on gowar does not negate the exemption provided under entry 9 for gowar churi or korma. By relying on legal precedents and statutory provisions, the Court arrived at the conclusion that gowar churi or korma is indeed exempt from tax under the relevant entry of the Schedule to the Act.

Ultimately, the Court allowed the revision and set aside the Board's order, ruling in favor of the petitioner. The Court held that gowar churi or korma is exempt from tax for the relevant year under consideration under entry 9 of the Schedule to the Act. The Court made it clear that the notification specifying tax rates on gowar does not affect the exemption status of gowar churi or korma under the specific provision of the Act.