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TMI Blog2009 (2) TMI 755X X X X Extracts X X X X X X X X Extracts X X X X ..... ngaged in manufacturing and sale of cattle feed having its business place at village Manwala Dhuri. For the purpose of manufacturing of cattle feed, it is also registered with the Dairy Development Department and is also registered as an approved party for the purchase of damaged foodgrains from the Food Corporation of India vide registration certificate dated June 3, 2008. It is approved only for the manufacturing of Feed-Grade II and Manure. The respondent-Corporation through its Regional Officer invited proposals for the disposal of damaged foodgrains, which can only be used for the purpose of cattle feed vide its Tender Notice No. 57/2008 dated August 27, 2008. The petitioner in response to this tender participated in the auction proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laid down in the tender, the petitioner has to use the damaged rice only as a raw material for the manufacturing of cattle feed and therefore, it cannot be treated as a feed itself. It is a raw material to be used for manufacturing of cattle feed and not exempt from payment of tax and as such, it is not covered under entry 4 of the Schedule A of the Act and by denying other assertions raised in the petition, it was finally prayed that the petition be dismissed. We have heard learned counsel for the parties and also gone through the paper-book with their assistance minutely. Section 16 of the Act, which is relevant to the issue raised reads as under: "16. Tax-free goods. - No tax shall be payable on the sale of goods specified in Schedul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d wheat. In the decision relied on by the learned counsel for the appellant this aspect is noticed but in that particular case fodder was defined as 'fodder except cotton seed and oilcakes'. In the present case there is no such exclusion of the damaged wheat that is processed and used as feed for the cattle. If that is so, we do not think that there is any justification to interfere with the view taken by the High Court. The appeal is dismissed. However, in the circumstances of the case there shall be no order as to costs." (emphasis Here italicised. added) It is, thus, evident that the honourable Supreme Court has interpreted the expression "cattle fodder" to include everything, i.e., fed to cattle including damaged wheat. It is f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It has also been provided by way of the terms of the tender that it would be absolutely necessary that the buyer of a particular category of stock shall use the same only for the purpose indicated and shall make no attempt whatsoever for adulteration or misuse of the stocks. An undertaking has also been obtained from the petitioner that the aforesaid goods would be used for manufacturing of Feed Grade I, Feed Grade II, Feed Grade III for the purpose for which the foodgrain is being purchased. Moreover, in similar circumstances, the Punjab State Warehousing Corporation had to refund the money to a dealer, namely, M/s. Bajaj Rice Mill, after it was forced to make the payment of sales tax while the damaged foodgrains were purchased. The refund ..... X X X X Extracts X X X X X X X X Extracts X X X X
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