2005 (3) TMI 789 - HC - VAT and Sales Tax

Summary

Issues involved:
Interpretation of notification regarding exemption of paneer and chena from tax under U.P. Trade Tax Act for Assessment Year 1998-99.

Detailed Analysis:

1. Interpretation of Notification Content:
The central issue in the present revision was the interpretation of Entry 40 of the notification no. ST-7038/X(23)/83-U.P. Act XV/48-Order-85, dated 31st January, 1985, regarding the exemption of milk products from tax. The Tribunal had excluded paneer from the exemption based on the Hindi version of the notification, which led to the question of whether paneer and chena are indeed excluded from the tax exemption.

2. Conflict Between Hindi and English Versions:
The applicant argued that in the English version of the notification, the word "cheese" is used instead of "paneer," suggesting a distinction between cheese and paneer as separate items. Relying on the principle that in case of any conflict between Hindi and English versions, the English version prevails, the applicant contended that paneer should not be excluded from the entry of milk products. This argument was supported by a reference to a decision of the Apex Court in a related case.

3. Judicial Precedents and Interpretation:
The Standing Counsel, on the other hand, maintained that chena and paneer are essentially the same item, with paneer being considered a type of soft cheese. Referring to a previous judgment by the Court in the case of Garhwal Paneer Bhandar, Ghaziabad v. Commissioner of Trade Tax, it was established that paneer falls under the category of cheese and is excluded from the scope of exemption under the relevant entry of the notification. The Court in the earlier case had clarified that paneer is a variety of cheese and should not be considered separate from the exemption.

4. Resolution and Upholding of Tribunal's Decision:
After considering the arguments presented by both parties and analyzing the notification content along with the previous judicial interpretations, the Court found no substance in the applicant's argument. It was concluded that there was no conflict between the Hindi and English versions of the notification, and the intent was clear to exclude paneer from the category of milk products exempted from tax. Following the precedent set by the earlier judgment and the interpretation of paneer as a type of soft cheese, the Court upheld the Tribunal's decision, dismissing the revision.

5. Final Decision:
In the final analysis, the Court upheld the order of the Tribunal, finding no error in its decision. Consequently, the revision was dismissed, and the applicant's contention regarding the exemption of paneer and chena from tax under the U.P. Trade Tax Act for the specified Assessment Year was not accepted.