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2014 (5) TMI 174 - HC - VAT and Sales TaxExemption of Tax - Classification Common salt Res Judicata - Whether common salt purchased and used in the manufacture of biscuits and other items, is an exempted item under Entry 7 of Part B of the Third Schedule of the TNGST Act Held that:- Judgment in MUNICIPAL CORPN. OF THANE v. VIDYUT METALLICS [2007 (9) TMI 399 - SUPREME COURT OF INDIA] followed - SC while considering the question of 'res judicata' in the matter of similar nature, observed that it would indeed be very difficult to hold that such a decision would not continue to operate in subsequent years unless it is shown that there are changed circumstances or the goods imported by the company in subsequent years were different than the ones which were imported earlier and in respect of which decision had been arrived at by the court - Thus by pointing out that the corporation therein has not brought any such contention or any material before the Court to take a different view, the Apex Court has held that the benefit of the earlier decision given by the High Court was right - Here also, by applying the said principle we find that there are no materials placed before this Court that the commodity which is the subject matter in both the occasions viz., for the assessment years 1997-98 and 1998-99 and for the present assessment years is different and distinct one - There are no change of circumstances also - On the other hand it is admitted that the commodity purchased and used by the assessee herein is only a 'common salt' - Therefore, having accepted the decision rendered by the Tribunal in respect of the very same commodity and treated it as an exempted goods under Entry 7 of Part B of the Third Schedule, there was no reason as to why the State took different view. Relying upon SHREE RAM MULTI TECH. LTD v. CCE [2006 (1) TMI 7 - SUPREME COURT] wherein Supreme Court considered the question of 'res judicata' in classification dispute Held that:- Assessee was entitled to challenge the classification, especially when they were parties to earlier proceedings - Applying the said SC reasoning and the finding that the Revenue being a party to the earlier decision of the Tribunal in respect of the very same classification dispute and having allowed the same to become final, it is not justified in contending otherwise in this case especially in the absence of any change or circumstances - Even on merits, we find that the Revenue is not justified in treating the common salt, purchased and used by the assessee under Entry 62 of Part B of the First Schedule. Interpretation of Statute Held that:- A bare perusal of the Entry 62 in Part B of the First Schedule would only show that what is placed therein is the "salt for industrial use", whereas, Entry 7 of Part B of the Third Schedule shows the common salt (sodium chloride) other than the salt for industrial use" - Thus, by a mere reading of these two entries, a distinction can certainly be made between the words 'salt for industrial use' and 'common salt other than the salt for industrial use' - If the intention of the legislature is to bring the common salt used for industrial purpose also under Entry 62 of Part B of the First Schedule, then they would have not avoided the word 'common salt' in such entry - On the other hand the word used under Entry 62 is only 'salt' for industrial use and not 'common salt' for industrial use - Likewise exemption granted to the item under Entry 7 of Part B of the Third Schedule, is 'common salt (sodium chloride) other than the salt for industrial use' - It is to be noted here that what is excluded from exemption is only the 'salt for industrial use' and not the 'common salt' - The Tribunal has not noted the distinction between the "salt" referable to Entry 62 of Part B of the First Schedule and "common salt" referable to Entry 7 of Part B of the Third Schedule - There is no hesitation in accepting the case of the assessee - Revisions are allowed Decided in favour of the assessee.
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