The judgment clarifies that specific entries in tax legislation take precedence over general ones when determining tax applicability.

O R D E R

S.V. Bhatti, J.

We have heard Mr K.N. Sreekumaran learned counsel for the revision petitioner and learned Government Pleader Smt.

M.M Jasmin.

2. The petitioner/dealer registered under Kerala Value Added Tax Act, 2003 (for short, ‘the Act’) challenges the order of the Tribunal dated 14.01.2020 in TA (VAT) No.105/2019 of the Kerala Value Added Tax Appellate Tribunal, Ernakulam. The revision petitioner raised the following questions of law:

“i) Whether the Appellate Tribunal is justified in law in dismissing the appeal on the ground that the food items like halva, mixture, laddu and jilebi sold by the petitioner would fall under Entry 11 of SRO 82/2006 notified under sec. 6(1)(d) of the KVAT Act in disregard of the definite and specific entry 8 of Schedule III of the KVAT Act which was inserted by the Kerala Finance Act

2014?

ii) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is justified in not distinguishing the ratio of the decision of this Hon'ble Court in O.T. (Rev) 120/2014 in Hon'ble High Court of Kerala in M/s. Perfect Agencies Vs. State of Kerala where the residuary entry 66 of 82/06 specifically contained the disputed item mosquito repellents unlike "entry 11 of SRO 82/06 which do not include the items like halva, mixture, laddu and jilebi?

iii) Whether the Appellate Tribunal is justified in interpreting the amended entry 8 of Schedule III ignoring the Legislative intention in inserting the above entry by the Finance Act 2014 as discernible from the Budget speech of the Hon'ble Finance Minister for unifying the rate of tax of the foods products items like halva, mixture, laddu and jilebi without branded/unbranded classification?

iv) Whether the Appellate tribunal is justified in not applying the rate of tax on the sale of items like halva, mixture, laddu and jilebi under the amended entry 8 as against entry 7 relating to bakery products sold under brand name in accordance with the settled Rules of Interpretation that the construction favourable to the assessee has to be adopted assuming that there is some ambiguity?”

3. The petitioner admittedly is in the business of manufacturing food preparations/items like mixture, jilebi, laddu, murukku, achappam, pakkavada, and unniyappam in the traditional Kerala style and marketing the said products under the brand name or monogram as “Fresh Products”. In the revision, the disputes related to the applicable rate of tax on the turnover from the sale of products referred to above are 5% or 14.5%. There is no dispute on the food preparations manufactured and sold by the petitioner. The petitioner filed the returns for the year 2014-15 by returning the total taxable turnover as Rs.5,33,71,912/- and paid tax at 5% under Entry 8 of Schedule III. The Assessing Authority completed the assessment by levying tax at 14.5% under Entry 11 as applicable under notification dated 21.01.2006 read with Kerala Finance Act (Act

29 of 2013).

4. The case of the dealer is that prior to 01.04.2015, the common, comprehensive Entry dealing with bakery products provided for payment of tax at 5% for all the bakery products such as sweets, confectionery, and other food products other than or except the products sold under the brand name registered under Trade Marks Act, 1999. Through Kerala Finance Act, 2014 (Act 29 of 2014), Entry 8 has been incorporated in Schedule III. For the subject return period, tax is payable at 5% but not by referring to Entry 7 of Schedule III. The Tribunal and the Statutory Authorities do not accept the argument of the dealer. Hence the revision.

5. We are not proposing to examine the reasoning and whether such reasoning is available in the facts and circumstances of the case. In a sequential manner, we would like to appreciate which one of the two Entries, viz. Entry 7 or 8 is attracted to the taxable turnover shown by the petitioner. To appreciate the controversy in a very limited compass, the relevant Entries are excerpted hereunder: 7. Ba