TMI Blog2020 (10) TMI 1059X X X X Extracts X X X X X X X X Extracts X X X X ..... raw material for manufacturing of paper. Once the firewood is put to any other use than as fuel, it would not be entitled to exemption of tax. It is trite that an exemption notification has to be construed strictly. A person claiming exemption provision to relieve him of tax liability must explain clearly that he is covered by the relevant provision. Unlike ordinary taxing statute, in the event of ambiguity, an exemption clause or provision has to be construed in favour of revenue. There are no merits in this revision petition so as to warrant any interference - revision petition dismissed. - STREV No. 78 of 2006 - - - Dated:- 13-10-2020 - HONOURABLE THE CHIEF JUSTICE MR. MOHAMMAD RAFIQ And HONOURABLE DR. JUSTICE B. R. SARANGI M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case. The Supreme Court in the aforesaid judgment held that when the firewood was sold with the object of being converted into pulp for manufacturing rayon, it was not being sold as firewood at all. But in the case of the petitioner, firewood was supplied to M/s. Orient Paper Mill pursuant to supply order under Annexure-4, which does not specify the object for which such firewood is to be used. The Tribunal therefore was not justified in mechanically applying the judgment of the Supreme Court in A. Subramanyam (supra). Mr. S. Mohanty, learned counsel for the petitioner in support of his case has relied upon a judgment of this Court in the case of Straw Products Limited v. State of Orissa and others, reported in (1990) 34 STL 67 (Ori). 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ors. (supra). However, in the decision reported in (2003) 130 STC 41: A Subramanyam Vrs. State of Tamil Nadu, the Hon'ble Apex Court held: The wood sold by the appellant may be used and described as firewood. But when it was sold with the object or being converted into pulp for manufacturing rayon, it was not being sold as firewood at all. The exemption is granted to firewood meant to be as firewood. The exemption cannot be extended to sales of wood for manufacture of rayon even though such wood is capable of being used as firewood and is generally used as such. The exemption is obviously for the benefit of people who buy or sell firewood for the purpose of using the same as firewood. This exemption is not for the benefit of per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent held as under: 3. We are unable to uphold this argument. The wood sold by the appellant may be used and described as firewood. But when it was sold with the object of being converted into pulp for manufacturing rayon, it was not being sold as firewood at all. The exemption is granted to firewood meant to be as firewood. The exemption cannot be extended to sales of wood for manufacture of rayon even though such wood is capable of being used as firewood and is generally used as such. The exemption is obviously for the benefit of people who buy or sell firewood for the purpose of using the same as firewood. This exemption is not for the benefit of persons who sell wood for manufacture of rayon pulp. In our view, approach taken by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a v. Wood Papers Ltd., referred to therein-represents the correct 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 to the State. 66. To sum up, we answer the reference holding as under: 66.1 Exemption notification should be interpreted strictly; the burden of proving applicability would be on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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