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TMI Blog2017 (1) TMI 784X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacturing Soya Oil and Deoiled Cake including Defatted Soya Flakes and Defatted Soya Grits. The petitioners have challenged before this Court the order dated 24/3/2015 and order dated 26/6/2014 passed by the Commissioner of Commercial Tax in exercise of powers conferred u/S. 70 of the M.P. VAT Act, 2002. The learned Commissioner has determined the classification of commodities known as 'Defatted Hypro Soyameal, Defatted Soya Hypro, Defatted Soya Flakes and Defatted Soya Grits' etc., The petitioners are manufacturing superior quality of deoiled cakes in terms of higher protein percentage with some modification in the manufacturing process ie., dehulling of seeds. It has been further stated that superior quality of deoiled cake is s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stered dealer purchasing notified goods from another registered dealer for sale or consumption, is required to deduct input tax from the amount payable to him to the selling dealer for such purchase and is obliged to issue certificate of deduction of tax in the manner prescribed under the provisions of the Act. After such deduction of tax, the purchasing dealer of such notified goods is required to deposit such amount deducted which is over and above the input tax rebate notionally admissible u/S. 14 on such purchases and is entitled to retain as refund the amount deducted by him ie., equal to notional ITR admissible u/S. 14 on such purchases. Soyabean has been notified for the purpose of said provisions of Sec. 26A by Notification dt. 4/1/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purposes of taxation and it deserves to be set aside. The common parlance test applied by the Commissioner is bad in law. The respondents have also filed a reply and their contention is that since different manufacturing process has been adopted for the production of defatted soya products or hypro soya products, the same cannot be termed as higher quality soyabean DOC. Respondents have further stated that the Commissioner has rightly held that while producing Soya DOC, there is no such process of de-hulling of soyabean, whereas, while manufacturing of defatted soya products or hypro soya products is done, it improves the quality of products meaning thereby different manufacturing process is involved and two different kinds of products com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssion of the petitioner that merely on the basis of commercial name of the product and the price of the product, the same cannot be treated different from normal DOC. The term 'DOC' is itself a wider term and would cover all its forms. Learned counsel for the petitioner has placed reliance upon the judgment delivered by the apex Court in the case of Alladivenkateswarlu and others Vs. Government of Andhra Pradesh reported in (1978) 41 STC 394 (SC), wherein, while dealing with a similar issue, the apex Court has held that "rice in husk" is "paddy", when it is removed from husk and the husk and rice become separately taxable under the Act. But there are no separate entries for rice and rice reduced into an edible form by heating or pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sense meaning exists, the generic entry would be construed as including the goods in question. The entry in question uses the word bitumen without any further stipulation or qualification. Therefore, it would include any product which has the composition of bitumen and in common parlance which is treated as bitumen and which can be used as bitumen. Thus, it is evident that the test laid down by the apex Court in the said decision squarely applies to the present case where goods specified in Entry-3 are 'Deoiled Cake including soya meal' and the expression 'Deoiled cake' is a generic expression which would include different types of DOC ie., defatted soya hypro products also. Even otherwise according to the principles of spe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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