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1987 Supreme(Mad) 409
High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE NAINAR SUNDARAM
Sree Ramakrishna Cattle-Feed Manufacturers - Appellant
Versus
Commercial Tax Officer, No. I, Virudhunagar and Another - Respondent
Case No : Writ Petitions Nos. 13079 of 1986 and 4965 of 1987
Decided On : 19 November 1987
The amendment to the notification on 12th April, 1979, did not alter the position and the ratio of the court on the point that the admixture of molasses or salt or both does not matter, since by such admixture the character of the original commodity or commodities is not changed.
Headnote:
SALES TAX - EXEMPTION - CATTLE FEED - MIXTURE OF RICE BRAN, PULSES, HUSK AND MOLASSES - AMENDMENT TO NOTIFICATION - WHETHER EXEMPTION STILL AVAILABLE - HELD, YES.
Fact of the Case:
The petitioner, a dealer in rice bran, wheat bran, husk, dust of pulses and grams, mixed them up and sold them with an admixture of molasses and salt. The issue was whether these products would come within the purview of "exemption" from the sales tax accorded as per notification.
Finding of the Court:
The court held that the amendment to the notification on 12th April, 1979, did not alter the position and the ratio of the court on the point must be held to be still applicable. The admixture of molasses or salt or both does not matter, since by such admixture the character of the original commodity or commodities is not changed.
Issues: Whether the amendment to the notification on 12th April, 1979, altered the position and the ratio of the court on the point.
Ratio Decidendi: The court held that the amendment to the notification on 12th April, 1979, did not alter the position and the ratio of the court on the point must be held to be still applicable. The admixture of molasses or salt or both does not matter, since by such admixture the character of the original commodity or commodities is not changed.
Final Decision: The court allowed the writ petition and quashed the assessment order passed by the second respondent.
NAINAR SUNDARAM, J.
The petitioner has been carrying on business in rice bran, wheat bran, husk, dust of pulses and grams. The petitioner admittedly sells these goods, mixing them up, and as well as with an admixture of molasses and salt. According to the petitioner, these products will come within the purview of "exemption" from the sales tax accorded as per notification therefor. The primary Notification is dated 4th March, 1974, and it reads as follows :
"In exercise of the powers conferred by sub-section (1) of section 17 of the Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act 1 of 1959), the Governor of Tamil Nadu hereby makes an exemption in respect of the tax payable by any dealer under the said Act on the sale of -
(1) bangles (other than those made wholly or partly of any metal),
(2) cattle feed, and
(3) firewood." *
There was an amendment to this notification on 23rd March, 1974, and the amendment notification reads as follows :
"In exercise of the powers conferred by sub-section (3) of section 17 of the Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act 1 of 1959), the Governor of Tamil Nadu hereby makes the following amendment to the Revenue Department Notification No. II(1)/Rev/386(g)/74, dated the 4th March, 1974, published in Part II - Section 1 of the Tamil Nadu Government Gazette, Extraordinary dated the 4th March, 1974 :-
AMENDMENT
In item (2) in the said notification, for the expression 'cattle feed, and', the following shall be substituted, namely :-
'cattle feed, namely, rice bran or wheat bran, or husk and dust of pulses and grams, but excluding -
(i) brokens of pulses and grams,
(ii) oil-cakes, and
(iii) cottonseeds, and'." *
Construing the question as to whether the cattle feed, consisting of a mixture of rice bran, pulses, husk and molasses and also a mixture of paddy husk with molasses will go out of the category of "exemption" as per the above notification, a Bench of this Court in State of Tamil Nadu v. M. Velmurugan (Tax Case No. 324 of 1979 and Revision No. 130 of 1979, order dated 18th September, 1980) held as follows :
"The cattle feed involved in this case consisted of a mixture of rice bran, pulses, husk and molasses, and also a mixture of paddy husk with molasses. In both these categories, molasses is the only material not specified in the Government Order dated 23rd March, 1974. However, molasses is merely a sweetening agent, and its addition will not change the character of the cattle feed as held by a Bench of this Court in T.C. No. 732 of 1977 (State of Tamil Nadu v. K. Ramachandran, judgment dated 4th January, 1978). In view of this, the Tribunal rightly held that the mixtures in question were entitled to exemption provided for by the Government in their order dated 23rd March, 1974 and therefore, the tax revision case is dismissed. There will be no order as to costs." *
2. On 12th April, 1979, there had been a further amendment and the amendment notification runs as follows :
"In exercise of the powers conferred by sub-sections (1) and (3) of section 17 of the Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act 1 of 1959), the Governor of Tamil Nadu hereby makes the following amendment to the Revenue Department Notification No. II(1)/Rev/386(g)/74 dated the 4th March, 1974, published in Part II - Section 1 of the Tamil Nadu Government Gazette, Extraordinary, dated the 4th March, 1974, as subsequently amended :-
AMENDMENT. - In the said notification, for item (2), the following item shall be substituted, namely :-'(2) hay or straw, green grass, rice bran, wheat bran and husk and dust of pulses and grams'." *
3. The petitioner was first visited with a pre-assessment notice in respect of the goods which the petitioner markets in the manner noted above, on the ground they are not entitled to exemption and that is being put in issue in W.P. No. 13079 of 1986. Since this Court declined to continue the stay granted in that writ petition, proceedings for assessment have been prosecute
