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2017 (12) TMI 1286 - HC - VAT and Sales TaxExemption from tax - De-Oiled Rice Bran under Entry 3 of the First Schedule - case of Revenue is that De-Oiled Rice Bran is very much covered under Entry-34 of Part-A of the Second Schedule and hence, it is taxable @ 4% - whether Rice Bran and De-Oiled Rice Bran are one and the same or different products? - Held that - A conjoint reading of Entry-3 of the First Schedule and Entry-34 of the Second Schedule makes it clear that Rice Bran is excluded from the list of exempted goods and has been included in the list of goods taxable - Rice Bran and De-Oiled Rice Bran are one and same product - Calcutta High Court in Sethia Oils Limited vs. Assistant Commissioner, Commercial Taxes, Postabazar Charge, 2003 (8) TMI 494 - CALCUTTA HIGH COURT has even held that since there is no change in the composition of Rice Bran and De-Oiled Rice Bran, both the products are same and that De-Oiled Rice Bran is Rice Bran and nothing else. Revision dismissed with cost.
Issues:
Interpretation of tax exemption under the Assam Value Added Tax Act, 2003 for De-Oiled Rice Bran as cattle feed. Analysis: The case involved a registered dealer under the Assam Value Added Tax Act, 2003, manufacturing Rice Bran Oil from Rice Bran and selling the De-Oiled Rice Bran as cattle feed. The petitioner claimed exemption from tax for De-Oiled Rice Bran under Entry 3 of the First Schedule, while the tax authorities held it taxable at 4% under Entry-34 of Part-A of the Second Schedule. The dispute arose from the classification of De-Oiled Rice Bran as either exempted or taxable. The petitioner challenged the tax authorities' decision through appeals and revisions up to the Assam Board of Revenue. The court examined Section 9(1) and Section 10(1) of the Act, 2003, which respectively deal with tax exemption for goods listed in the First Schedule and the tax liability of dealers for goods specified in the Second Schedule. Entry-3 of the First Schedule exempted Aquatic feed, poultry feed, and cattle feed, including De-Oiled Rice Bran, while Entry-34 of the Second Schedule listed Rice Bran as taxable at 4%. The crucial question was whether Rice Bran and De-Oiled Rice Bran were the same product. The court referred to precedents from the Karnataka and Calcutta High Courts, which had established that Rice Bran and De-Oiled Rice Bran were considered the same product due to no change in composition. Additionally, the court analyzed a Division Bench decision of the Karnataka High Court, which had included De-Oiled Rice Bran in the list of exempted goods under the Karnataka Sales Tax Act, 1957. However, the court distinguished this decision as the Assam State Legislature had deliberately excluded Rice Bran from the list of exempted goods and included it in the taxable list under the Assam Act of 2003. The court dismissed the revisions, upholding the tax authorities' decision to tax De-Oiled Rice Bran and imposed a cost of ?2000 on the petitioner for each revision. In conclusion, the judgment clarified the classification of De-Oiled Rice Bran as taxable under the Assam Value Added Tax Act, 2003, based on the interpretation of relevant provisions and precedents from other High Courts. The court's decision emphasized the consistency in treating Rice Bran and De-Oiled Rice Bran as the same product, leading to the denial of tax exemption for De-Oiled Rice Bran.
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