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TMI Blog1996 (3) TMI 474X X X X Extracts X X X X X X X X Extracts X X X X ..... on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act, 1979 (in short, "the Act"). They import tendu leaves also known as beedi leaves, into their respective local areas for the said manufacturing purpose. In these writ petitions they are aggrieved by various notices issued against them for assessing/reassessing tax on entry of tendu leaves. Their plea is that tendu leaves be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we have so far thought of cultivation of land in the wider sense as comprising within its scope the basic as well as the subsequent operations described above, regardless of the nature of the products raised on the land. These products may be grain or vegetables or fruits which are necessary for the sustenance of human beings including plantations and groves, or grass or pasture for consumption of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mphasis* supplied). 3.. After so holding, the apex Court has further clarified that products of land like timber, tendu leaves, etc., do not necessarily fall in the category of agricultural produce. It has been held that, whether the particular produce will fall in the category of agricultural produce or not will depend upon the activities carried on the land for raising or deriving the said pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... them for consumption in their manufacturing process had been acquired by their vendors by undertaking agricultural operations as clarified by the Supreme Court in paras 101 and 102 of the Report in the case *Here italicised. of Commissioner of Income-tax v. Raja Benoy Kumar Sahas Roy [1957] 32 ITR 466 (SC); AIR 1957 SC 768. 5.. Further, section 28-A(1) of the Act provides that, for the purpos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Supreme Court. 7.. The writ petitions are accordingly disposed of reserving the liberty to the petitioners to comply with the notice already issued to them within such time as may be fixed by the concerned authority and lead such evidence as may be available to them to prove that the beedi leaves brought by them in the local areas are agricultural produce. No costs. Writ petitions dispo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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