2007 (1) TMI 527 - HC - VAT and Sales Tax

Summary

Issues involved: Interpretation of tax exemption u/s 4 of U.P. Trade Tax Act, 1948 for milk products prepared by mixing white butter and milk powder.

Summary:
Three revisions u/s 11 of the Act challenged Tribunal's order on taxability of milk products prepared by mixing white butter and milk powder. Applicant claimed adding these to enhance milk quality. Tribunal held the milk as artificial, not exempt u/s 4. Court remanded for fresh decision citing precedents. Applicant argued milk includes artificial milk, relying on Full Bench decision. Tribunal's inference based on show-cause reply was disputed. Assessment records showed additives were used to meet fat and SNF standards, not to create artificial milk. Court held milk in any form is exempt u/s 4, including reconstituted milk. Explanation excludes only specific types, not artificial milk. Court allowed revisions, directing Tribunal to exempt milk products from tax.