2007 (4) TMI 652 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of exemption under Notification No. 7038 for tarbuj seeds
2. Taxability of coconut powder as oil seeds
3. Exemption on stock without evidence submission

Analysis:
1. The first issue pertains to the interpretation of the exemption under Notification No. 7038 for tarbuj seeds. The court referred to a previous case, CTT v. Heeralal Ram Das, where it was held that tarbuj seeds qualify as a vegetable seed exempted from tax under the mentioned notification. The court upheld the Tribunal's decision in this regard, emphasizing the tax exemption status of tarbuj seeds.

2. Moving on to the second issue, the court addressed the taxability of coconut powder as oil seeds. Referring to the case of Commissioner of Sales Tax, U.P. v. Gokul Chandra Bhatia, the court established that coconut and coconut powder are considered similar commodities and are taxable at a rate of four percent. This decision clarifies the tax treatment of coconut powder despite its use by sweet meat makers as dry fruit rather than oil seeds.

3. Lastly, the issue of exemption on the stock of Rs. 37,598 without supporting evidence was considered. The Tribunal determined that the business was closed, and the closing stock was deemed as dead stock, not suitable for sale. The court affirmed the Tribunal's factual finding in this matter, concluding that no legal question arose. Consequently, the revision was dismissed based on the findings and interpretations provided for each issue.