New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (4) TMI 251 - SUPREME COURT

2015 (4) TMI 251 - SUPREME COURT - TMI - Benefit of the exemption under the notification SRO No.1727 of 1993 - entire turnover from sales of chicks and chicken are exempt from the levy of tax under the KGST Act - Whether one-day chicks that the dealer purchases from the State of Tamil Nadu and rears in the State of Kerala are exempted from payment of tax in view of Notification No.1723 of 1993 which has come into effect from 04.11.1993 - Held that:- Object of the notification ought to be conside .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

65 - SUPREME COURT OF INDIA)]. - Entry 24 of the notification contemplates two categories of dealers, (i) a poultry farmer and (ii) hatcheries. What is exempted under the notification is the turnover from sales of chicks and chickens by both types of dealers. It is not specified that if a poultry farmer imports or effects inter-State purchase of chicks and chickens, it would be ousted from the purview of the notification and thus, not be entitled to the benefits of the notification. In our cons .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in favour of assessee. - Civil Appeal No. 1654 of 2008, Civil Appeal No. 3979 of 2007 - Dated:- 24-3-2015 - H. L. Dattu, CJ And Arun Mishra,JJ. For the Appellants : Mr R Venkatramani, Sr. Adv. Mr Atul Shankar Vinod, Adv. Ms Neelam Singh, Adv. Mr Yashraj Bundala, Adv. Ms Mukti Chowdhary, Adv. Dr S Gopakumaran Nair, Sr. Adv. Mr T G Narayanan Nair, Adv. & Mr K N Madhusoodhanan, Adv. For the Respondents : Mr V Shyamohan, Adv. Mr Abhishek Kumar, Adv. & Ms Liz Mathew, Adv. JUDGMENT 1. Since th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

er is engaged in the activity of running a poultry farm. In its poultry farm, it not only engages in hatching of the eggs but also involves in firstly, inter-State purchase of one-day chicks from the State of Tamil Nadu, secondly, rearing of the chicks in the State of Kerala and thereafter, effecting the sale of chicks and chicken within the State. 3. During the assessment proceedings for the relevant assessment year 1998-1999, the assessing authority was of the view that the one-day chicks brou .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he assessee had preferred second appeal before the Sales Tax Appellate Tribunal, Ernakulam (for short, "the Tribunal"). The assesseealongwith the grounds against estimation of additional turnover fixed by the authorities below, had raised fresh grounds seeking benefit of the exemption under the notification SRO No.1727 of 1993 (for short, "the notification") and claimed that the entire turnover from sales of chicks and chicken are exempt from the levy of tax under the KGST Ac .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

with respect to the sale of chicks and chickens brought from outside the State and hence, partly allowed the appeal by order dated 30.11.2004. 7. It is this order of the Tribunal which was questioned by the respondent-State in the Revision Petition filed before the High Court. 8. The High Court has considered the object and purpose of the notification, that is, to encourage the poultry farmers and the hatcheries within the State, who rear chicks and chickens in the State and consequently, keepi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

counsel appearing for the assessee while assailing the impugned judgment and order submit that since the language of the notification is unambiguous, the High Court ought not to have delved into the object and reasons which prompted the respondent-State Government to issue the notification. He would further submit that the notification does not prescribe any conditions for the applicability of exemption contained therein for the poultry farms and hatcheries in the State and therefore, the exempt .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed. 12. The question that requires our consideration and decision is whether one-day chicks that the dealer purchases from the State of Tamil Nadu and rears in the State of Kerala are exempted from payment of tax in view of Notification No.1723 of 1993 which has come into effect from 04.11.1993. 13. In these appeals, we are concerned with the assessment years 1993-94, 1997-1998 and 1998-1999. It is neither in dispute nor has it been disputed that the notification SRO No.1727 of 1993 would be app .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e or purchase, as the case may be, of goods mentioned in column (3) against them, subject to the conditions and restrictions, if any, specified in column (4) thereof against each; ***** Schedule III Dealers whose turnover of sale or purchase is exempt under sub-clause (2) of clause 1. Sl. Name of Turnover which conditions No. Dealer is exempted and Restrictions (1) (2) (3) (4) 24. Poultry farmers Turnover of sale Nil including hatcheries of chicks and in the State chickens." 15. The languag .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

otification ought to be considered in placing correct interpretation on the entries employed thereunder and thus, must receive a liberal construction. It is well settled that a provision providing for an exemption has to be construed strictly. In cases wherein the language of the exemption contained in the notification is simple, clear and unambiguous, the exemption notification must be given its natural meaning and the object and purpose of the notification need not be looked into. (CCE v. Favo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rect view of law. The principle that in case of ambiguity, a taxing statute should be construed in favour of the assessee- assuming that the said principle is good and sound-does not apply to the construction of an exception or an exempting provision; they have to be construed strictly. A person invoking an exception or an exemption provision to relieve him of the tax liability must establish clearly that he is covered by the said provision. In case of doubt or ambiguity, benefit of it must go t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version