1999 (9) TMI 914 - HC - VAT and Sales Tax

Summary

Issues involved: Interpretation of entry No. 40 in a notification dated January 31, 1985 under the U.P. Sales Tax Act.

In this case, a revision petition was filed under section 11 of the U.P. Sales Tax Act challenging an order passed by the Sales Tax Tribunal, Lucknow in appeal No. 22 of 1990 against an order passed by the Commissioner under section 35 of the Act. The respondent manufactured and sold a product called "milk badam," which is sweetened milk with added dry fruits, stored in bottles and sold as a cold drink. The main issue was whether this product falls under the category of "milk and milk products" as per entry No. 40 in the notification dated January 31, 1985. The said entry excluded certain products from the definition of milk and milk products.

The Tribunal, after considering the manufacturing process and sale of the product, concluded that the commodity sold is essentially milk and therefore exempt from tax. The Court reviewed the Tribunal's decision and found no illegality in it. It was emphasized that even if the product is sold in sealed bottles, it does not change the nature of the product. The exclusion in the entry applies to milk products sold in sealed containers, not to milk itself. Consequently, the Court upheld the Tribunal's decision, stating that the revision petition lacked merit and dismissed it accordingly.