9911796707
TMI Blog2013 (11) TMI 261X X X X Extracts X X X X X X X X Extracts X X X X ..... rice. In Notification No. 709 dated 27.02.1997 the words "processing, packaging and marketing of cereals, pulses, masalas and chhonks" have been used. Thus it was processing of the cereals and not processing of paddy. The word cereal means paddy, rice and all other food grains. Thus the exemption granted to the petitioner on the sale of rice was fully covered in the word 'cereals'. By the subsequent Government Order dated 30.09.2004, "rice and it's by-product manufactured from paddy" has been specifically excluded from clause-38 of Entry-3. An exclusion clause can not be treated as a clarificatory clause, or clarification of existing clause. The exclusion of specific goods clearly proves that the excluded goods were included in this cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation dated 31.1.1985, as amended by notifications dated 5.10.1995, 4.3.1997 and 26.9.2001, the firms registered with UP Khadi Evam Gramodyog Board were given exemption from tax upto turnover of Rs.50 lacs. Under item no.38 grains have been mentioned in the notification, which exclusively include both paddy and rice. On the basis of these notifications the petitioner was granted exemption from sales tax for the financial year 2000-01, upto turnover at Rs.50 lacs. Similar exemption was also given for the financial years 2002-03, 2003-04 and 2004-05 by Senior Manager, District Gramodyog, Varanasi. By a subsequent notification dated 30.9.2004 entry 38 was amended and rice manufactured from paddy was excluded from the list of exemption. 4. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 2003 (M/s. Him Gramodyog Sansthan vs. Additional Commissioner and Others) decided on 19.12.2006, wherein this Court has held that units of Khadi Gram Udyog Board were entitled for exemption of trade tax on the sale of rice under the Government Order dated 31.01.1985 and Government Order dated 27.02.1997. Accordingly, the exemption from trade tax liability on the sale of rice claimed on the basis of Government Order dated 27.02.1997, was rightly given. 7. Learned Special Counsel for the State of U.P. however submitted that the Apex Court in Ganesh Trading Company Vs. State of Haryana, AIR 1974 SC 1362, and in Satnam Overseace (Exports) Vs. State of Haryana, (2003) 1 SCC 561 has held that manufacture of rice from paddy is not processing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icatory clause, or clarification of existing clause. The exclusion of specific goods clearly proves that the excluded goods were included in this clause prior to that date of exclusion. The notification dated 30.09.2004, which carries exclusion of some goods will apply prospectively and not with retrospective effect. The reassessment under Section 21 (2) on the basis of notification dated 30.09.2004, which was not applicable for the Assessment Years 2002-03 and 2003-04, was illegal." 6. We are of the view, that since the matter is covered by the aforesaid judgments, the re-assessment orders in respect of assessment years 2002-03, 2003-04, and 2004-05 are liable to be set aside, in so far as the petitioner was re-assessed to trade tax on s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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