Latest - TMI e-Newsletter
New User/ Regiser
2022 (8) TMI 160 - CST, VAT & Sales Tax
Classification of goods - Chuni, by-product of Dal - schedule goods within the meaning of Sl. No.66 of Para-I of the Schedule attached to the Orissa Entry Tax Act, 1999 or not - HELD THAT:- It is one thing to say that a certain product was exempted for the purposes of taxation by virtue of interpretation of an exemption notification, it is another to say that it is amenable to tax by bringing it within the ambit of another product shown in the Schedule to the OET Act and, therefore, bringing it within the fold of taxation. The approach to both cannot be the same.
What perhaps is determinative is Section 26 of the OET Act, which clearly states that it is only a finished product which would be amenable to entry tax. Conscious of this, the Single Member Chairman tries to bring ‘Chuni’ within the ambit of a ‘finished’ and a separate ‘commercial’ product. However, the fact remains that ‘chuni’ or ‘chokad’ is only a by-product and not a complete finished product in itself. The finished product as far as the present case is concerned is ‘cattle feed’ which is what is mentioned in Entry 66 of the Schedule to the OET Act. So, the question to be asked is can in the context of Section 26 of the OET Act read with Entry 66 ‘Chuni’ to be considered in itself to be a finished product and, therefore, not different from ‘cattle feed’? The answer to this has to be in the negative since ‘Chuni’ is one of the 16 ingredients into the making of ‘cattle feed’ and it is not the same thing as ‘cattle feed’ as occurring in Entry 66 of the Schedule to the OET Act.
The Court is of the view that ‘Chuni’ which is the by-product of ‘Dal’ is not ‘cattle feed’ and is therefore not amenable to entry tax - Revision petition dismissed.