Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2022 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (12) TMI 969 - ALLAHABAD HIGH COURTClassification - Porridge / Daliya (cracked wheat) - Entry No. 36 of the Schedule of UPVAT Act excludes instant porridge as the latter sui generis a class of instant food as opposed to natural food - Whether the Tribunal is correct in law in stating that Entry No. 100 in Part-A of Schedule-II of the UPVAT Act is specific in nature and it covers brochures which are nothing but printed material even though brochures are comprehended within the meaning of Books in Entry No. 7 of the Schedule-I of the UPVAT Act and which in law is a specific entry” is being taken up first and decided? HELD THAT:- The Constitution Bench of the Hon’ble Apex Court in Dilip Kumar [2018 (7) TMI 1826 - SUPREME COURT] had cleared the air in regard to concession/exemption/incentive/rebate/subsidy and have dealt the matter in extenso and held, that in the event of any ambiguity in the exemption notification the benefit of such ambiguity should be construed in favour of the revenue denying the benefit of exemption to the subject/assessee - The Apex Court found that it is a settled law that any ambiguity in taxing statute should enure benefit of subject/assessee, but any ambiguity in the exemption clause of exemption notification must be conferred in favour of the revenue. It is clear that the issue in regard to exemption clause is no more res-integra and the Apex Court has settled the question in favour of the revenue, that when there is an ambiguity in exemption notification or exemption clause, the benefit of such ambiguity cannot be extended to the subject/assessee by applying the principal that an obscure and/or ambiguity or doubtful fiscal statute must receive a construction favouring the assessee. Classification - Porridge - The Act does not make any distinction between the normal porridge and instant porridge, and the finding arrived by the Tribunal is a fallacy. The intention of legislature was clear that exemption from tax has to be given to the product Porridge whether it was instant Porridge or normal Porridge i.e. Daliya (cracked wheat). The finding recorded by the Tribunal does not record any substantial finding so as to exclude instant wheat porridge under Entry 36 of Schedule-I of the exempted list of goods, when no distinction has been made by legislature. The Tribunal was not correct to read in between and deny the benefit to the assessee as granted by the taxing statute. The finding recorded by the Tribunal is hereby set aside - the question of law framed thus is answered in favour of the assessee and against the revenue.
|