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TMI Blog2018 (3) TMI 1716X X X X Extracts X X X X X X X X Extracts X X X X ..... ation would have been specific or at least the notification would have mentioned that the said notification would be applicable except for Tendu Leaves. There can be no dispute of the fact that the exemption certainly would be applicable only to those minor forest produces which are exigible to tax. Once when a generic term has been used by the legislature, it has to be construed as if the legislature meant all those items which fall under the said generic term which in the instant case is minor forest produce and which includes Tendu Leaves - Further there is no exclusion carved out in respect of any item including Tendu leaves from its applicability so far as the notification granting exemption under Section 15 B of CG VAT Act is concerned. This Court is of the opinion that vide notifications issued under Section 15 B of the VAT Act from time to time, the State Government has granted an exemption to a generic term known as minor forest produce which includes Tendu leaves as there is no clarification or exclusion in any of these notifications. Since minor forest produce has not been separately entered in the Schedule, it would be inclusive of all those items which are shown ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such class of goods specified was minor forest produce where the exemption was partly granted so as to reduce the rate of tax to 4% initially but vide subsequent notification for the subsequent period, the rate has been reduced to 5%. 5. Contention of the counsel for the petitioners is that once when the State Government in exercise of its powers under Section 15B of the CG VAT Act has granted an exemption of payment of tax in part to the minor forest produce and the rate of tax fixed by way of reducing the rate of tax at 5%, the respondents thereafter cannot demand VAT on Tendu leaves purchased by the petitioners at 25%. According to the petitioners, there is no dispute so far as whether Tendu leaves is a minor fores produce or not. Once when it is a minor forest produce, the rate of tax leviable would be as per the notifications issued by the Govt. from time to time which is the reduced rate. Thus, prayed for an appropriate direction to the State Government in this regard. 6. Per contra, Shri Garry Mukhopadhyay, Govt. Advocate submits that Tendu leaves find place as a specific entry at serial no.5 in part III of Schedule-II under the VAT Act. The rate of tax also is specif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le to tax, the purchasers were required to pay the full VAT tax under the VAT Act and the petitioners were directed to pay VAT @ 25 percent. 10. Subsequently, the State Government issued a notification on 31.03.2006 granting exemption partly reducing the rate of tax on minor forest produce to 4 percent. Initially, the validity of the notification was from 01.04.2006 to 31.03.2008, however, by another notification dated 31.03.2008, the exemption was further extended from 01.04.2008 to 31.03.2012 and vide notification dated 24.03.2012, the validity of notification was further extended up to 31.03.2013. 11. Now what has to be seen is, the VAT Act does not contain a definition of minor forest produce. 12. It is all the more relevant to mention at this juncture that even in the schedule fixing the rate of tax leviable, there is no entry or an item known as minor forest produce. At the same time, the Chhattisgarh State Forest Policy, 2001 defines non Timber forest produce and which includes Tendu leaves also as minor forest produce. However, Tendu leaves finds place in Part-III of Schedule-II of the VAT Act wherein at Serial No.5, the rate of tax mentioned is 25 percent. So far ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption to minor forest produce. The notifications clearly reflect of having been issued invoking the powers under Section 15 B of the CG VAT Act. Thus, it clearly reflects that the exemption notifications were issued for those items which were taxable under Schedule II of the VAT Act. Since the generic term minor forest produce has been used in the notification, it has to be presumed that it would bring under it all those products which are minor forest produces more particularly all those minor forest produces which have been found to be taxable items under Schedule II. The Chhattisgarh State Forest Policy, 2001 defines minor forest produce under Clause 4.5 of the Policy which reads as under: 4.5 Conservation of Minor Forest Products (MFP) Non timber forest produce called the Minor Forest Products or MFP like Tendu leaves, Sal seed, Imli, Chironji, Kullu and Dhawra gum, Kosa cocoon, honey etc.... Minor forest produce is also defined under Section 2 (i) of the Forest Rights Act, 2006 which reads as under: 2 (I) 'minor forest produce' includes all non-timber forest produce of plant origin including bamboo, brush wood, stumps, cane, tussar, cocoons, honey, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility so far as the notification granting exemption under Section 15 B of CG VAT Act is concerned. The Supreme Court in the case of Padinjarekara Agencies Limited v. State of Kerla, (2008) 13 VST 151 (SC) in paragraph-12 has held as under: Exigibility to tax is a concept which is different from the concept of exemption/concession. As stated above, when it came to exigibility, the department contended that after April 1, 1988, field latex and centrifuged latex were two distinct and separate commodities and, at the same time, when it came to exemption, the same department contended that field latex and centrifuged latex are one and the same commodities, hence, assessee was not entitled to claim concessional rate of duty under circular No. 16/98 dated May 28, 1998. Exigibility to tax is different from the concept of exemption/concession. The rules of interpretation which apply to classification of items in a taxing statute can differ in appropriate cases from the terms and conditions of exemption notification. Interpretation adopted in a classification dispute need not be the same as interpretation of exemption notification under the same Act. Every exemption notification has to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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