TMI Blog2013 (6) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... 06 (3) TMI 320 - SUPREME COURT OF INDIA], it was observed that “there could be nothing like exemption of goods from tax unless goods are exigible to tax.” There is no dispute that minor forest produce as such, is not exigible to tax. Forest produce like Bamboo, Tendu leaves etc. are exigible to tax under different entries. Thus, the exemption is applicable to all the forest produce which are eixigible to tax. The exemption will certainly be applicable to only those minor forest produce, which are exigible to tax. Since these petitions involve mixed question of facts and law, liberty is reserved to the respective petitioners to prefer an application before the Commissioner, VAT Act, if so advised, for exemption under the above stated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs were required to pay the Value Added Tax (for short the VAT ) under the Chhattisgarh Value Added Tax Act, 2005 (for short the VAT Act ). The petitioners were directed to pay VAT at the rate of 25% on purchase of Tendu leaves. In the meantime, the State Government issued a notification on 31.03.2006 (Annexure P/4) granting exemption partly so asto reduce the rate of tax on minor forest produce to 4%. The said notification was valid for the period 01.04.2006 to 31.03.2008. By notification dated 31.3.2008 (Annexure - P/5), the exemption on final minor forest produce was further extended for the period from 1.4.2008 to 31.3.2012 reducing the rate of tax to 5%. Thereafter, on 24.03.2012 (Annexure P/6), by notification validity of the notifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erein clause 8 of the purchase agreement is very specific. The State Government, by notification dated 01.09.2006, has amended the VAT tax for transaction of Tendu Leaves at the rate of 25%. The petitioner ought to have approached the Assessing Authority before filing the present writ petition. The petition is premature and on the ground of availability of alternative remedy, this petition is not maintainable. Once the specific rate has been notified for the Tendu Leaves, it cannot be considered as minor forest produce for the purpose of the taxation, irrespective of the definition of minor forest produce in other Acts. Besides, the State is fully competent to impose different rate of taxes for different minor forest produce. Shri Agrawal, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on goods specified in Schedule II, a tax at the rate mentioned in the corresponding entry in column (3) thereof. Subsequently, by Amendment Act, 2006, schedule II of the principal Act, 2005 was amended and the column No. 3 was omitted and column No. 4 was re-numbered as column No. 3 and Rate of tax under Section 8 (ii) was substituted by Rate of tax under Section 8 percent . Thus, the defect in Schedule II was amended and the rate of tax was brought under column No. 3 and as such, rate of tax was in accordance with the charging section 8. Thus, there is no infirmity with regard to Schedule II for the purpose of rate of tax. 9. Shri Dubey, on behalf of the petitioners, without amending the pleadings, argues that since the amending Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I. 10. As regards applicability of the exemption notifications dated 31.3.2006 (Annexure - P/4) and 31.03.2008 (Annexure P/5). period of which has been extended till 30.04.2013, it will be applicable to only those good or class of goods, which are exigible to tax as specified in schedule - II of the Act, 2005. There is no taxable entry separately for minor forest produce. The exemption notifications provide for granting exemption to minor forest produce partly so as to reduce the rate of tax to 5%. This tax exemption is available to all the minor forest produce. The State Government, in its return dated 26.11.2012 has clearly stated that minor forest produce are in several entries, as follows :- 9 .However, by perusal of certain specif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... honey, wax, lac, tendu or kendu leaves, medicinal plants and herbs, roots, tubers and the like; There is no other definition in any other provisions including the Adhiniyam, 1964. 13. It is fairly admitted by Shri Agrawal that there is no separate entry, however, it is contended that wherever the separate entries for Tendu Leaves have been made, that would not come under the purview of the exemption. 14. The issue asto whether exemption would be available to such goods, which are not exigible to tax came up for consideration before the Supreme Court in the matter of Reliance Trading Company v. State of Kerala (2006) 147 STC 111 (SC), it was observed that there could be nothing like exemption of goods from tax unless goods are exigibl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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