Advocates appeared :
For the Appellant : Vashistha Narayan Dubey
For the Respondent : Manish Nair

ORDER VIVEK RUSIA, J. : – Regard being had to the similitude in the controversy involved in the present cases, with the joint request of the parties, matters are analogously heard and being decided by this common order. Facts are being taken from VATA No. 43/2020.

The appellant has filed this Value Added Tax Appeal under section 13 of the Madhya Pradesh Entry Tax Act, 1976 read with section 53 of the MADHYA PRADESH VALUE ADDED TAX ACT , 2002 against (i) assessment order dated 29-10-2015 passed by the Assessing Officer in Proceeding No. 52/2014/Entry tax pertaining to assessment year 2013–14 (ii) order dated 2-11-2016 passed by the Additional Commissioner and Appellate Authority, Commercial Tax, Indore in First Appeal No. 293/Entry tax/2015 and (iii) order dated 25-6-2020 passed by the Madhya Pradesh Commercial Tax Appellate Board, Indore in Second Appeal No. A/442/CTAB/IND/16 disallowing the claim of exemption of entry tax on rectified spirit to the tune of Rs. 15,26,36,500/- and imposing an interest amounting to Rs. 1,66,447/-.

2. The facts of the case in short are as under : –

2.1. The appellant is a company registered under the provisions of the Companies Act, 1956 and is engaged in the business of potable alcohol/alcoholic liquor under the licences issued by the Government of Madhya Pradesh under the M.P. Excise Act, 1915. During the period from 1-4-2013 to 31-3-2014, the appellant purchased potable spirit to manufacture the liquor. Prior to 1-4-2013, the spirit was exempted along with liquor from entry tax under Entry No. 2 of Schedule – I of the exemption list of the Entry Tax Act. According to the appellant, prior to 1-4-2013, the spirit was also under the category of goods falling under Schedule – I of the Value Added Tax Act (hereinafter referred to as VAT Act) and also under Entry No. 47 of Schedule – I of the VAT Act.

2.2. After 1-4-2013, Entry 47 of Schedule – I of the VAT Act has been separated into two entries i.e. Entry 47 of Schedule – I and II and Entry 6 of Part – III-A of Schedule – II, therefore, despite the aforesaid amendment, the spirit being a liquor continued to be exempted from the entry tax as it is covered under the M.P. Excise Act. In the year 2009-10, the respondents have rejected the spirit to be classified under Entry 47 of Schedule – I of the VAT Act and started classifying the spirit under the residual entry of the VAT Act.

2.3. Number of writ petitions were filed challenging the aforesaid action of the State viz. W.P. Nos. 10256/2016, 10258/2016, 10260/2016 and 10261/2016 and vide order dated 26-8-2016, all the writ petitions were allowed, and assessment orders were quashed.

2.4. The State Government approached the Apex Court by filing the SLP challenging the order passed in the main case of W.P. No. 2366/2016 and the said SLP has been dismissed on 17-4-2017, meaning thereby, the order of the High Court classifying the spirit under Entry 47 of Schedule – I of the VAT Act has been upheld. However, it is not in dispute that this Court has considered Entry 47 of Schedule – I of the VAT Act prior to amendment on 1-4-2013. After 1-4-2013, Entry 47 of Schedule – I of the VAT Act has undergone a change and it is split into two entries (i) Entry 47 of Schedule – I under section 16 of the VAT Act and (ii) Entry No. 6 in Part – III-A of Schedule – II of the VAT Act and the same is as under : –

“(i) ------ (ii) liquor sold by a dealer other than a dealer who holds C.S.-2/C.S.-2B/F.L.-1/F.L.-1AAAA license under the Madhya Pradesh Excise Act, 1915.” (6) ------

2.5. The relevant part of the order dated 26-8-2016 passed in Nos. 10256/2016, 10258/2016, 10260/2016 and 10261/201