9911796707
TMI Blog1995 (11) TMI 400X X X X Extracts X X X X X X X X Extracts X X X X ..... rief facts giving rise to this reference are: The applicant-assessee was assessed to tax for Diwali year 1977-78. The sales tax on the rice bran had been assessed to tax at the rate of 3 per cent and the turnover on this account was Rs. 7,13,343. The applicant's case throughout was that sales should have been assessed to tax at the rate of 2 per cent in view of the notification issued by the State Government under section 8 of the Central Sales Tax Act, 1956. Learned counsel invited the attention of this Court towards the Division Bench decision of this Court wherein it was held that the husk of paddy is commonly known as konda and is exempted vide notification dated April 7, 1967. However, the Tribunal held that under the notification da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow: "Notification No. 1073-537-V-ST dated the 7th April 1967. In exercise of the powers conferred by section 12 of the Madhya Pradesh General Sales Tax Act, 1958 (No. 2 of 1959), the State Government hereby exempts in whole the goods or class of goods mentioned in column (1) of the Schedule below from the payment of tax for the period specified in column (2) thereof: SCHEDULE Description of goods Period (1) (2) 1. Husk of all grains, cereals, pulses and rice From 1st April, 1967 to31st March, 1968 (both days inclusive). From 1st April, 1967 to 31st March, 1968 (both days inclusive). 2. Bran 4. In the case of Chordia Kavelu Udyog [1988] 69 STC 49, thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or rice. The same view was taken by another Division Bench of the said court in Commissioner of Sales Tax v. Jamuna Prasad [1975] 36 STC 442. It was held that bran cannot be included in the category of 'bhusi'. Again the same view was reiterated in Commissioner of Sales Tax, U.P. v. Dhannamal Ram Gopal [1975] 36 STC 445. We agree with this view." Their Lordships, after discussing the whole process, held that the first process for the rice is removal of the husk from the paddy and after removing all the husk from the paddy, the product is known as rice. Further, while polishing rice, the outer layer has to be removed and such item which is removed from the rice is known as a bran. It was pointed out that the rice bran is powdered rice and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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