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TMI Blog2007 (7) TMI 585X X X X Extracts X X X X X X X X Extracts X X X X ..... two writ petitions are being disposed of as the following common question of law arises in both petitions: Whether maize is a coarse grain and is exempt from payment of value added tax under item No. 13 of Schedule B of the H.P. Value Added Tax Act, 2005 or is liable for payment of tax at four per cent under Part II of Schedule A of the said Act? It is not disputed by the respondents that maize is a coarse grain. In the Central Sales Tax Act, 1956, Chapter IV relates to goods of special importance in inter-State trade or commerce. Section 14 provides that certain goods can be declared to be of special importance for the purpose of interState trade or commerce. Maize is covered under section 14(i)(vi) of the Central Sales Tax Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 9 deals with goods exempt from tax. The goods enlisted in this Schedule are totally exempt from imposition of tax. Entry 13 of Schedule B reads as under: 13. Coarse grains other than paddy, rice and wheat. The case of the petitioner as put forth by Shri M.M. Khanna, learned Senior Advocate, is that maize being a coarse grain is specifically covered under item No. 13 of Schedule B and is, therefore, exempt from tax. On the other hand, the stand of the State is that maize is specifically included under section 14 of the Central Sales Tax Act and is covered under item No. 28 of Part II of Schedule A of the H.P. VAT Act, 2005 and is, therefore, chargeable to tax at four per cent. Interestingly, both sides have relied upon the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment, in its wisdom, thought it fit and proper that these goods being of special importance should not be taxed at a rate more than four per cent. However, this is the maximum rate prescribed. The Central Government has not laid down that these goods must be taxed at four per cent. It is for the State Government to decide whether to levy any tax on these goods or not. If the State Government wants to levy the tax on these special goods, it can levy tax at any rate not exceeding four per cent. Therefore, it is difficult to accept the argument of the State that section 14 of the Central Sales Tax Act is a special enactment vis-a-vis the item No. 13 of Schedule B . In fact, in our opinion, the H.P. VAT Act is a selfcontained code. Under Pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specifically provides that coarse grains other than paddy, rice and wheat are exempt from tax. The intention of the Legislature is clear. Whereas paddy, rice and wheat will continue to be taxed at four per cent per annum, under item No. 28, other coarse grains including maize, jowar, bajra, ragi, etc., would be exempt from tax. There was no use of incorporating entry No. 13 in Schedule B if all coarse grains as well as paddy, rice and wheat had to be taxed at four per cent. Almost all coarse grains like jowar, bajra, maize, ragi, kadon, kutki, barley have been declared to be of special importance under section 14 of the Central Act. If the argument of the State is accepted then entry No. 13 of Schedule B shall be rendered otiose as th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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