1996 (5) TMI 419 - SC - VAT and Sales Tax

Summary

Issues involved: Interpretation of exemption notification under Section 4(2) of the Rajasthan Sales Tax Act, 1954 regarding the exemption of Gole Papad from sales tax.

Summary:
The Supreme Court granted special leave to appeal a decision by the High Court of Rajasthan, Jaipur Bench regarding the exemption of Gole Papad from sales tax under a notification issued by the State u/s 4(2) of the Rajasthan Sales Tax Act, 1954. The High Court had ruled against the appellant's claim for exemption, contrary to the decision of the Sales Tax Tribunal which had allowed the appeal, stating that the notification covered all varieties of Papad, regardless of ingredients or shape. The notification referred to Papad and Badi as exempt items, without specifying ingredients, leading to the question of whether Gole Papad made from different ingredients should also be exempt. The Court found that the High Court's interpretation was incorrect, and the Tribunal's interpretation was correct, emphasizing that the notification treated Papad as a genus without differentiation based on ingredients. The Court allowed the appeal, suggesting that the government could amend the exemption notification if needed. No costs were awarded in the matter.