9911796707
TMI Blog2007 (1) TMI 527X X X X Extracts X X X X X X X X Extracts X X X X ..... he applicant was milk prepared by mixing of white butter and milk powder in natural milk to increase the quality of milk. It was claimed that the applicant was selling the milk of specified standard and to maintain the said standard in the milk white butter and milk powder, etc., have been added. For the assessment year 1990-91 the assessing authority granted the exemption on the sale of such milk in the original assessment proceeding. Subsequently, reassessment proceeding under section 21 of the Act was initiated and the tax had been assessed on the sale of such milk on the ground that the exemption was not admissible to the artificial milk under section 4 of the Act but was admissible to the natural milk. Likewise for the assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt was artificial milk manufactured by mixing white butter and milk powder and, therefore, such milk was not liable for exemption under section 4 of the Act. The decision of this court in the case of Commissioner of Trade Tax v. Nainital Dugdh Utpadan Sahkari Sangh Ltd., Nainital reported in [2001] UPTC 328 was distinguished on the ground that in that case it was held that after mixing milk powder, it remains milk. While in the present case, artificial milk has been prepared by mixing milk powder, white butter and cream, etc. Heard the learned counsel for the parties. The learned counsel for the applicant submitted that the Tribunal has erred in observing that the applicant had manufactured artificial milk by mixing white butter, milk pow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed milk, butter or butter oil has been included in milk. He submitted that the amendment in the Explanation is clarificatory in nature and to be made applicable even for a period prior to November 1, 2000. The learned Standing Counsel relied upon the order of the Tribunal. Having heard the learned counsel for the parties, I have perused the order of the Tribunal and the authorities below. I have also perused the assessment records. In the assessment records, replies to the show-cause notices are available on record. For the assessment year 1990-91 show-cause notice was issued on July 14, 1995 in which it has been alleged that milk powder, cream and white butter had been purchased and out of which milk had been manufactured and why it shou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... age of fat and SNF, white butter and milk powder had been added in the milk. Such milk was sold as milk. Therefore, the Tribunal is wrong in saying that the applicant had manufactured artificial milk by mixing milk powder and white butter, etc. In the case of Commissioner of Trade Tax v. Nainital Dugdh Utpadan Sahkari Sangh Ltd., Nainital reported in [2001] UPTC 328 it has been held by this court that after mixing milk powder in the milk, it remains milk and exempted from tax under section 4 of the Act. Under section 4(a) of the Act sale or purchase of milk is exempted. Clause (b) of Explanation prior to amendment by the U.P. Act No. 35 of 2000 and subsequent to the U.P. Act No. 35 of 2000 read as follows: "Explanation (b) to section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Gujarat v. Sakarwala Brothers [1967] 19 STC 24 cannot support the dealer. I am unable to accept this submission. As stated earlier, there is no justification limiting the meaning of the expression 'milk' as used in section 4(a) of the U.P. Sales Tax Act to milk obtained in its natural form only. In my opinion, the expression 'milk' in section 4(a) means milk in any form just as the expression 'sugar' in entry 47 of Schedule A to the Central Excises and Salt Act, 1944 means sugar in any form. I am, accordingly, of opinion that the aforementioned Supreme Court cases support the view that condensed milk is milk within the meaning of section 4(a) of the U.P. Sales Tax Act. . . . 24.. It may be that milk in its natural ..... X X X X Extracts X X X X X X X X Extracts X X X X
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