2000 (10) TMI 943 - HC - VAT and Sales Tax

Summary

Issues:
1. Whether one-day-old chicks are exempt from sales tax under G.O. Ms. No. 130, Revenue (CT-II) dated February 14, 1989?
2. Whether day-old chicks fall within the purview of livestock as per the Andhra Pradesh General Sales Tax Act, 1957?
3. Whether the subsequent notification exempting one-day-old chicks from tax implies they were not exempt earlier?

Issue 1: The Tribunal allowed the appeals, exempting one-day-old chicks from sales tax based on G.O. Ms. No. 130, Revenue (CT-II) dated February 14, 1989. The State challenged this decision in the tax revision cases.

Issue 2: The Supreme Court's interpretation in Royal Hatcheries' case clarified that day-old chicks do not fall within the definition of livestock under the Andhra Pradesh General Sales Tax Rules, 1957. The Court emphasized that livestock is limited to certain types of domestic animals, excluding non-quadrupeds like chicks.

Issue 3: Despite the subsequent notification specifically exempting one-day-old chicks from tax in August 1992, the Court held that this did not negate their previous exemption status. The Court cited past cases to support the practice of issuing clarificatory provisions in taxing statutes to avoid potential litigation and provide certainty.

In conclusion, the Court dismissed the tax revision cases, upholding the exemption of one-day-old chicks from sales tax under G.O. Ms. No. 130, Revenue (CT-II) dated February 14, 1989. The judgment highlighted the distinction between livestock and poultry, emphasizing that day-old chicks do not fall under the former category. The subsequent notification exempting chicks from tax was seen as a precautionary measure rather than a reversal of their previous exemption status.