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TMI Blog2003 (8) TMI 494X X X X Extracts X X X X X X X X Extracts X X X X ..... terms of clause 253 of Schedule IV, therefore, tax is leviable on de-oiled rice bran unless the same is specified in Schedule I or Schedule VIIIA. 2.. There is no dispute that neither in Schedule I, nor in Schedule VIIIA, de-oiled rice bran has been specified. In Schedule I goods have been specified on sale of which tax is not leviable. Clause 14(c)(ii) thereof describes husk and bran of all cereals and pulses except rice bran when sold on or after April 1, 2000. Therefore, if rice bran was sold on or before April 1, 2000, no tax was leviable thereon. The question is whether de-oiled rice bran and rice bran are the same commodity or not. 3.. Rice bran is available from husking mills. They are husk or bran of rice. They were sold at t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the order dated February 27, 2003 rejected the appeal. The appellate authority found as a fact that the assessing officer disallowed the claim for exemption of de-oiled rice bran extraction, as the same is not a commodity under Schedule I on the ground that law envisages exemption of sale proceeds of only those rice bran which are full of oil content and once oil is extracted, they no longer remain the rice bran contemplated by law for the purpose of exemption under Schedule I and held as follows: "On due consideration of the facts and circumstances of the instant matters, it is amply clear that the claims for exemption of sales of de-oiled rice bran extraction under the West Bengal Sales Tax Act, 1994 and under the Central Sales Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sel for the Revenue submitted that the order dated September 3, 2001 where the self-same gentleman exercising his power of appellate authority decided that de-oiled rice bran is outside the purview of sales tax, made the said pronouncement on the basis of his the then information of law, but the impugned order came into being subsequently, for the assessing officer correctly pointed out that de-oiled rice bran and rice bran are different commodities. 10.. The learned counsel for the petitioner submitted that despite taking this diagonally opposite stand on February 27, 2003, no step has yet been taken to touch upon the order dated September 3, 2001. 11.. The name de-oiled rice bran made the commodity separate from rice bran. It was know ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erm, cattle fodder, for the purpose of exemption. The question, thus, arose whether de-oiled rice bran will or will not be cattle fodder. This was answered by saying, since rice bran is a by-product of paddy and de-oiled rice bran is a by-product of rice bran and inasmuch as by-product of a by-product cannot retain the same character everywhere, rice bran and de-oiled rice bran are different commodities and although rice bran has been excluded, de-oiled rice bran will remain included in cattle fodder. The expression "by-product" has been defined in McGrow Hill Dictionary of Scientific and Technical Terms as "a product from a manufacturing process that is not considered the principal material". Where paddy is the principal material, rice bra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cteristics, thus, will remain unchanged. There is no change in the composition at all. There is a vast difference between a structural change and a change in the composition. I cannot, therefore, accept that de-oiled rice bran is a by-product of rice bran. 14.. In the case referred above, the division Bench of the High Court of Karnataka* has correctly held that by soaking the rice bran cake, i.e., de-oiled rice bran, in rice bran oil, the oil content can be restored. What it had therefore stated is that there is a structural change, but the substratum, i.e., the physical characteristics, remains the same. I would, therefore, accept the views of the division Bench of the Karnataka High Court and declare that even after extraction of oil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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