2010 (9) TMI 978

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..... rs [2009 (12) TMI 863 - MADHYA PRADESH HIGH COURT], that the maize oil and maize cake are by-products of maize and are exempted from tax under the notification dated April 30, 1994 (annexure P/5). The impugned orders dated June 29, 2001 (annexure P/l in both the writ petitions) are quashed, accordingly. Writ petition allowed.
SATISH K. AGNIHOTRI , J. ORDER:- SATISH K. AGNIHOTRI J.--Both the writ petitions, i.e., W.P. Nos. l450 and 1451 of 2002, involve a common question of law based on identical facts between the same parties, except the different registration numbers, thus, they are being disposed of by this common order. The petitioner impugns the legality and validity of the order dated June 29, 2001 (annexure P/1) passed by the Ad .....

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..... s would submit that in the process of manufacturing of starch from maize, the by-products like husk, gluten, germ, grit are produced. Grain germ is used as raw material for production of maize oil and maize cake. Thus, maize oil and maize cake are not by-products of the maize, but in the process of production of starch. Thus, maize cake and maize oil are not exempt from payment of taxes under the above-stated notification. The Supreme Court, in Indian Farmers Fertilizer Coop. Ltd. v. Commissioner of Central Excise, Ahmedabad [1996] 86 ELT 177, observed that the exemption notification must be so construed as to give due weight to the liberal language it uses. A Division Bench of the High Court of Madhya Pradesh, considering the same notifi .....

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..... State Government hereby exempts from 1st April 1994 the class of goods specified in column (2) of the Schedule below from payment of whole of tax under the said Act. SCHEDULE Sl. No. Class of goods 1 to 6 . . . 7. Atta, maida, suji, rawa, flour, and other by-products of foodgrains and cereals " Thus, I do not find any reason to take a contrary view as interpreted by the Division Bench of the High Court of Madhya Pradesh in Rajaram and Brothers [2010] 32 VST 364, wherein the same notification was involved. Thus, I am in respectful agreement with the decision in Rajaram and Brothers [2010] 32 VST 364, that the maize oil and maize cake are by-products of maize and are exempted from tax under the notification dated April 30, 1994 .....

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