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TMI Blog2007 (7) TMI 585X X X X Extracts X X X X X X X X Extracts X X X X ..... disputed by the respondents that maize is a coarse grain. In the Central Sales Tax Act, 1956, Chapter IV relates to goods of special importance in inter-State trade or commerce. Section 14 provides that certain goods can be declared to be of special importance for the purpose of interState trade or commerce. Maize is covered under section 14(i)(vi) of the Central Sales Tax Act, which reads as follows: "14. Certain goods to be of special importance in inter-State trade or commerce.-It is hereby declared that the following goods are of special importance in inter-State trade or commerce: (i) cereals, that is to say,- (i) paddy (oryza sativa L.); (ii) rice (oryza sativa L.); (iii) wheat (triticum valgar, T. compactum, T. sphaerococcum,T. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B" and is, therefore, exempt from tax. On the other hand, the stand of the State is that maize is specifically included under section 14 of the Central Sales Tax Act and is covered under item No. 28 of Part II of Schedule "A" of the H.P. VAT Act, 2005 and is, therefore, chargeable to tax at four per cent. Interestingly, both sides have relied upon the principle "Generalibus specialia derogant"-meaning "Special things derogate from general". Both sides are in agreement that the general entry must yield to the special entry. Whereas the case of the petitioner is that the general entry is item No. 28 in Part II of Schedule "A" and the special entry to which it must yield is item No. 13 in Schedule "B", the stand of the State is that the H.P. V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to levy the tax on these special goods, it can levy tax at any rate not exceeding four per cent. Therefore, it is difficult to accept the argument of the State that section 14 of the Central Sales Tax Act is a special enactment vis-a-vis the item No. 13 of Schedule "B". In fact, in our opinion, the H.P. VAT Act is a selfcontained code. Under Part II of Schedule "A", item No. 28 deals with all goods declared to be of special importance under section 14 of the Central Sales Tax Act and tax at four per cent per annum is payable on these goods. Section 9 of the VAT Act gives power to the State Government to exempt certain goods from payment of tax. The State has in the exercise of this power specifically made entry No. 13 in Schedule "B" of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l coarse grains as well as paddy, rice and wheat had to be taxed at four per cent. Almost all coarse grains like jowar, bajra, maize, ragi, kadon, kutki, barley have been declared to be of special importance under section 14 of the Central Act. If the argument of the State is accepted then entry No. 13 of Schedule "B" shall be rendered otiose as there would be virtually no coarse grain falling under this entry. This could not have been the intention of the Legislature.
In view of the above discussion, we hold that maize which is admittedly a coarse grain is exempt from tax under item No. 13 of Schedule "B" of the H.P. VAT Act, 2005. The writ petitions are allowed in the aforesaid terms.
No order as to costs. X X X X Extracts X X X X X X X X Extracts X X X X
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