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TMI Blog2020 (2) TMI 526X X X X Extracts X X X X X X X X Extracts X X X X ..... d 27.01.2005, by which the Assessee was denied the exemption on the interstate sales of wheat bran claimed to have been sold by the assessee as cattle feed. The observations made by the Tribunal in the impugned order for denying exemption to the Assessee are quoted below for ready reference. " 4.In the grounds of appeal, the appellants have contended that the assessment made on the disputed turnover representing the sales of wheat bran used as cattle feed for the disputed assessment year was improper, the same confirmed by the Additional Appellate Assistant Commissioner was also improper, sales of wheat bran for cattle feed was exempted from tax under entry 57(v) of Part B of the Third Schedule to the TNGST Act, 1959 and the same was also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for exemption and the assessment is made disallowing the exemption is improper. The arguments of the appellants are that the sales of wheat bran is exempted from tax, the same sold is used as cattle feed and the same is eligible for exemption. The arguments of Additional State Representative are that the sales of wheat bran is not exempted from tax, exeption granted is a conditional one, the condition imposed is that when the same sold used for cattle feed alone is eligible for exemption, the goods sold is not fulfilling the conditions imposed and the same treated as taxable sales is proper. These have been examined. The assessment made relates to 1998-99. The appellants are dealers in wheat products. The disputed turnover represents sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed dealers in the course of interstate sale and Entry 57(v) of Part A of Third Schedule of TNGST Act exempts cattle feed and wheat bran used for cattle feed other than those falling under Item 12 of Part B of the First Schedule which is taxable at 4%, therefore the exemption available to the Assessee on sales made within the State was available to the Assessee even on the interstate sales made by the Asssessee by virtue of Section 8(2)(A) of the Act. 3. On the other hand, Mr.Mohammed Shafiq, learned Special Government Pleader (Taxes) appearing for the Revenue supported the impugned order and urged that since the exemption in question is not general in nature, but only under specified circumstances viz., when the wheat bran is used for catt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act, however wheat bran used for cattle feed (other than those falling under Item 12 of Part B of the First Schedule) is exempted from payment of tax only if the wheat bran is used for cattle feed. Since wheat bran can be used for both purposes, as cattle feed as well as for human consumption, the legislature has exempted the wheat bran from payment of tax only if it is used for cattle feed. Entry 12 of the First Schedule in Part B which levies 4% tax prescribes the 'First Sale' as 'Point of Tax' on Cattle Feed Compounds including Feed Supplements and Concentrates. 6. The Petitioner Assessee, who is a dealer of Wheat products inter alia also seems to have sold wheat bran to certain cattle feed dealers of other States ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interstate trade and commerce was a cattle feed or not. Since this exercise was not undertaken, the denial of exemption to the Assessee, without arriving at such finding of facts cannot be sustained. The higher appellate authority also did not seem to have undertaken any such fact finding exercise. 8. Therefore, we are of the opinion that the matter deserves to be remanded back to the learned Assessing Authority for undertaking the said exercise of fact finding as to whether the wheat bran sold by the Assessee in the course of interstate sale was a cattle feed or not, which is obviously for the Assessee to establish such facts with relevant evidence before the Assessing Officer. 9. Accordingly, the present writ petition is disposed of by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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