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2018 (3) TMI 1716 - CHHATTISGARH HIGH COURTRate of tax - Tendu Leaves - whether Tendu leaves can be brought within the ambit of notification issued by the State Government in exercise of its powers under Section 15(B) of the Chhattisgarh Value Added Tax Act, 2005 whereby tax on minor forest produce has been reduced to 5%? - Held that:- There is no dispute of the fact that under Schedule-II of VAT Act there are various entries/items which are otherwise minor forest produces. Once when a notification has been issued invoking the powers under Section 15B of the VAT Act, there cannot be different conclusion drawn than that of the exemption so granted being in respect of those items which under the schedule are minor forest produces or else the notification would have been specific or at least the notification would have mentioned that the said notification would be applicable except for Tendu Leaves. There can be no dispute of the fact that the exemption certainly would be applicable only to those minor forest produces which are exigible to tax. Once when a generic term has been used by the legislature, it has to be construed as if the legislature meant all those items which fall under the said generic term which in the instant case is minor forest produce and which includes Tendu Leaves - Further there is no exclusion carved out in respect of any item including Tendu leaves from its applicability so far as the notification granting exemption under Section 15 B of CG VAT Act is concerned. This Court is of the opinion that vide notifications issued under Section 15 B of the VAT Act from time to time, the State Government has granted an exemption to a generic term known as minor forest produce which includes Tendu leaves as there is no clarification or exclusion in any of these notifications. Since minor forest produce has not been separately entered in the Schedule, it would be inclusive of all those items which are shown as taxable products under Schedule-II. Unless a product is exigible to tax, there can be no exemption or reduction in rate of tax. The petitioners are liable to pay tax only at the rate as specified in the notification issued under Section 15 B of the CG VAT Act, 2005 reducing the rate of tax to 5% - petition allowed.
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