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TMI Blog2015 (4) TMI 251X X X X Extracts X X X X X X X X Extracts X X X X ..... providing for an exemption has to be construed strictly. In cases wherein the language of the exemption contained in the notification is simple, clear and unambiguous, the exemption notification must be given its natural meaning and the object and purpose of the notification need not be looked into. [CCE v. Favourite Industries, (2012 (4) TMI 65 - SUPREME COURT OF INDIA)]. - Entry 24 of the notification contemplates two categories of dealers, (i) a poultry farmer and (ii) hatcheries. What is exempted under the notification is the turnover from sales of chicks and chickens by both types of dealers. It is not specified that if a poultry farmer imports or effects inter-State purchase of chicks and chickens, it would be ousted from the purview ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the KGST Act ) and the Central Sales Tax Act, 1956 (for short, the Act ). The registered dealer is engaged in the activity of running a poultry farm. In its poultry farm, it not only engages in hatching of the eggs but also involves in firstly, inter-State purchase of one-day chicks from the State of Tamil Nadu, secondly, rearing of the chicks in the State of Kerala and thereafter, effecting the sale of chicks and chicken within the State. 3. During the assessment proceedings for the relevant assessment year 1998-1999, the assessing authority was of the view that the one-day chicks brought by the dealer from outside the State and reared and sold within the State are taxable under the KGST Act and accordingly, had completed the assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der of the Tribunal which was questioned by the respondent-State in the Revision Petition filed before the High Court. 8. The High Court has considered the object and purpose of the notification, that is, to encourage the poultry farmers and the hatcheries within the State, who rear chicks and chickens in the State and consequently, keeping in its view the aforesaid, observed that the notification does not contemplate exemption for poultry farmers who effect inter-State purchase of one-day chicks and subsequently, rear and sell chickens within the State and the said farmers are ineligible for exemption under the notification. Therefore, the High Court has allowed the tax revision and set aside the order passed by the Tribunal. 9. We h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 99. It is neither in dispute nor has it been disputed that the notification SRO No.1727 of 1993 would be applicable for the aforesaid assessment years. 14. To appreciate the controversy, it would be beneficial to extract the notification issued by the State Government in exercise of its powers under Section 10 of the KGST Act. The notification reads as under: ....the Government of Kerala, having considered it in the public interest to do so, hereby make an exemption- (1) in respect of the tax payable under the said Act: 2. by dealers mentioned in column (2) of Schedule III on the turnover of sale or purchase, as the case may be, of goods mentioned in column (3) against them, subject to the conditions and restrictions, if any, s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same issue in relation to an exemption notification, a three-Judge Bench of this Court, stated the principle as follows: 16. We are, however, of the opinion that, on principle, the decision of this Court in Mangalore Chemicals and Fertilisers Ltd. v. CCT, 1992 Supp (1) SCC 21 and in Union of India v. Wood Papers Ltd., (1990) 4 SCC 256 referred to therein--represents the correct view of law. The principle that in case of ambiguity, a taxing statute should be construed in favour of the assessee-- assuming that the said principle is good and sound--does not apply to the construction of an exception or an exempting provision; they have to be construed strictly. A person invoking an exception or an exemption provision to relieve him of the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notification is clear and precise. The plain reading of the entry in the notification herein neither reflects any ambiguity nor creates confusion as to contents of the notification and therefore, we need not look into the object and purpose of the notification which prompted the State authorities to frame and issue the aforesaid notification. 18. In view of the above, we are of the considered view that the learned Judges of the High Court were not justified in allowing the Revision Petition and upsetting the order passed by the Tribunal. 19. In the result, we set aside the judgment(s) and order(s) passed by the High Court and restore the order(s) passed by the Tribunal. 20. The Civil Appeals are disposed of accordingly. Ordered ..... X X X X Extracts X X X X X X X X Extracts X X X X
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