An exemption granted under Section 4 of the Uttar Pradesh Sales Tax Act in respect of any class of goods or class of persons shall remain in force unless it is withdrawn.

( 1 ) THIS revision under Section 11 of the Uttar Pradesh Sales Tax Act (hereinafter referred to as the "act") is directed against the judgment and order dated 11th October, 1982, passed by the sales Tax Tribunal, Gorakhpur Bench, Gorakhpur (hereinafter referred to as the "tribunal"), allowing the second appeal of the assessee-opposite party holding that "neem ki khali" is a kind of manure and it cannot be put in the category of oil-cake and as such it has been wrongly taxed. Thus, a further relief on the turnover of "neem ki khali" fixed at Rs. 10,000 on which tax relief at the rate of 5 per cent amounting to Rs. 500 has been given to the assessee. This order of the tribunal has been challenged in this revision.

( 2 ) LEARNED Standing Counsel urged that the Tribunal has erred in holding that the "neem ki khali" is manure (fertilizer) and as such exempt from tax. Learned Standing Counsel urged that notification No. ST-3470/x dated 16th July, 1956, made under Section 4 of the Act grants exemption from the levy of tax only to "fertilizers, other than chemical fertilizers". According to the learned counsel "neem ki khali" cannot fall in the category of fertilizer and as such it cannot be exempted from levy of tax. The learned counsel contended that "neem ki khali" falls in the category of oil-cake and as such it would be covered by Notification No. ST-II-2995/x- 6 (7)-73 dated 3rd April, 1975, which was amended by Notification No. ST-II-8452/x- L (2)-75 dated 1st october, 1975, and as such purchase tax was liable to be paid at the rate of 4 per cent. Referring to these notifications learned Standing Counsel urged that the Tribunal legally erred in holding that no tax was liable to be charged on the aforesaid amount of the turnover of "neem ki khali".

( 3 ) NO one appeared on behalf of the assessee. I, however, requested Sri R. K. Gulati and Sri bharatji Agrawal to agree and place relevant materia] so that proper decision may be arrived at on the undernoted question involved in the case : whether the Tribunal was legally justified in holding that there is no liability of tax on neem ki khali (oil-cake of neem) being a fertilizer covered by Notification No. ST-3470/x dated 16th july, 1956, or it will be liable to be taxed being oil-cake and covered by Notification No. ST-II-2995/x-6 (7)-73 dated 3rd April, 1975, as amended by Notification No. ST-II-8452/x-1 (2)-75 dated 1st October, 1975, by which tax rate leviable on oil-cake was enhanced from 2 per cent to 4 per cent ?

( 4 ) IT is to be noticed that by virtue of Notification No. ST-908 dated 20th August, 1948, made under Section 4 of the Act oil-cakes were exempted from the liability of tax under the Act, and oil-cakes were included in the item "cattle fodder", which was exempt from tax. Entry at serial no. (3) in the said notification made under Section 4 of the Act granting exemption read as follows : (3) Cattle fodder, including green fodder, gowar, chuni, bhusi, chhilka, oilcakes and cotton seed.

( 5 ) LATER on by Notification No. ST-911/x dated 31st March, 1956, only cattle fodder including green fodder was exempt from payment of tax. This entry was, however, substituted with retrospective effect by Notification No. ST-3471/x dated 16th July, 1956, which reads as "cattle fodder including green fodder, chuni, bhusi, chhilka, chokar, cotton seed, gowar and oil-cake". Later on, this entry at serial No. (3) in respect of cattle fodder in the aforesaid notification was, however, substituted by the following entry by Notification No. 2994/x- 6 (7)- 73 dated 3rd April, 1975, "cattle fodder including green fodder, chuni, bhusi, chhilka, chokar and gowar, but not including khali (oil-cake), rice polish, rice bran or rice husk". And, by notification of the same date, namely, No. ST-II-2995/x-6 (7)-73 dated 3rd April, 1975, issued under Sub-section (1) of section 3-D of the Act, oil-cake was made liable to tax. The rate of tax was enhanced to 4 per cent by subsequent not