2013 (7) TMI 867 - HC - VAT and Sales Tax

Exemption from sale turnover - contention of the petitioner is that the petitioner has sold husk and the sale of such husk is exempted as per entry 30D of List A of the rate chart under the Orissa Sales Tax Act. - Held that - Case of State of Orissa v. Mangala Store 2001 (7) TMI 1270 - ORISSA HIGH COURT deals with the issue of mustard oil cake and not mota kunda as in the present case. Apart from that, admittedly in the present case as would be clear from entry No. 30D that it relates to exemption of tax on the sale of feed and fodder in respect of the item mentioned therein. In order to claim benefit of such entry, the sale must have been for the purpose of feed for cattle, poultry and aquatic excluding prawn feed. Hence, in the circumstances of the present case, no question of law arises. No good reason to entertain the present revision petition and we are in respectful agreement with the conclusion reached by the Tribunal in the impugned order. - Decided against assessee.

Summary

Issues:
1. Interpretation of entry No. 30D of List A of the rate chart under the Orissa Sales Tax Act.
2. Determination of whether the commodity sold is "husk" or "coarse bran."
3. Conflict between orders passed by the Tribunal in different cases.
4. Application of the judgment in the case of State of Orissa v. Mangala Store to the present case.

Analysis:
1. The primary issue in this case revolves around the interpretation of entry No. 30D of List A of the rate chart under the Orissa Sales Tax Act. The petitioner contends that the sale of "husk" is exempted under this entry. However, the Tribunal concluded that the commodity sold, referred to as "mota kunda," is not husk but rather "coarse bran," which is not covered under entry No. 30D. The Tribunal's decision was based on the fact that the commodity was purchased by oil mills for extracting oil, not for use as feed or fodder.

2. The second issue concerns the determination of whether the commodity in question is "husk" or "coarse bran." The petitioner asserts that they sold husk, which is exempted from sales tax under entry No. 30D. On the other hand, the Commercial Tax Department argues that the commodity sold is coarse bran, locally known as "mota kunda," and is not covered under the exemption. The Tribunal, as the final fact-finding authority, upheld that the petitioner sold "mota kunda" to oil mills, which is considered coarse bran and not husk.

3. A further issue raised by the petitioner is the existence of a conflicting order passed by the Tribunal in a different case. The petitioner points to a different order in S.A. No. 18(C) of 2003-04, highlighting a potential inconsistency. However, the Court did not find this conflicting order to be relevant to the present case's specific circumstances.

4. Lastly, the application of the judgment in the case of State of Orissa v. Mangala Store to the present case was discussed. The Court clarified that the Mangala Store case dealt with "mustard oil cake," not "mota kunda" as in the present matter. Additionally, the Court emphasized that entry No. 30D provides an exemption for the sale of feed and fodder for specific purposes, which must be met to claim the tax benefit. As the present case did not align with the conditions specified in entry No. 30D, the Court found no legal issue to be addressed.

In conclusion, after considering the arguments presented by both parties and reviewing the relevant legal provisions and precedents, the High Court dismissed the revision petition, concurring with the Tribunal's decision that the petitioner's sale of "mota kunda" to oil mills did not qualify for the exemption under entry No. 30D of the Orissa Sales Tax Act.