TMI Blog2023 (3) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... tionality as far as Entry 3 is concerned, the only conclusion that can be drawn is that sales of Chokad irrespective of the purpose for which such Chokad has been purchased by the buyer, would be exempt from VAT. It is not even the Department s case that any notification has been issued by the State Government stating that Chokad is an Industrial input for the purposes of Entry 74 of Schedule B . Without noticing this requirement in Entry 74, both the STO as well as the JCST fell into error in drawing an inference that Chokad sold to NALCO must naturally have been used as an industrial input. This cannot be a matter of surmise or conjecture. If Entry 74 of Schedule B had to be made applicable in order that the sale of Cho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ber, 2006. In effect, the Tribunal concurred with the STO and the JCST that Chokad sold by the dealer to NALCO, an Industry unit, would attract 4% tax in terms of Entry 74 of Schedule-B of Part-II of the OVAT Act for the aforementioned period. 2. Admit. The following question of law is framed for consideration:- A. Whether the Tribunal is justified in confirming levy of tax on the sale of Wheat Bran (Chokad) @ 4% treating the same as industrial input coming under SI No.74 of Part-II of Schedule-B particularly when Wheat Bran (Chokad) is generally exempted under Entry 3 of Schedule-A? 3. The background facts are that the Petitioner-Dealer carries on business in cattle feed, poultry feed, salt, rice and broken rice and effects ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods Conditions of exemptions 1. xxxxxxxx 2. xxxxxxxxx 3. Aquatic feed, poultry feed and cattle feed including supplements, concentrates, additives, de-oiled cake, grass, hay and straw and husk of pulses, wheat and groundnut including chokad 7. It must be noted here that the above Entry was substituted with effect from 1st July, 2005 where the list of goods included Chokad . It must further be noted that Column-3 which is titled Conditions of exemptions has been left blank. In other words, there is no conditionality a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ious institution governed under the Orissa Hindu Religious Endowments Act, 1951, it would be exempt from VAT and not when it sold outside such premises. The Court, therefore, finds merit in the contention advanced by Mr. Kar, learned counsel for the Petitioner, that there is no conditionality attached to the exemption granted from VAT on sale of Chokad . 11. Mr. Mishra, learned Standing counsel for the Department sought to contend that the very nature of the goods in Entry 3 reflects the legislative intent of exempting them from VAT only where they are used as such and not as inputs in the manufacture of some other commodity. 12. The fact remains that an entry in a taxation statute admits only of strict interpretation. If the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en it was necessary for the Department to show that there was a notification issued by the State Government identifying Chokad as an industrial input . In the absence of such notification, no inference could have been drawn that Chokad sold to NALCO was in fact an Industrial input . 15. The Court is, therefore, satisfied that the STO, the JCST and the Tribunal erred in treating the sale of Chokad by the Petitioner to NALCO as an industrial input attracting VAT at 4%. 16. The question framed is, accordingly, answered in the negative, i.e., in favour of the Petitioner-dealer and against the Department. The impugned order of the Tribunal and the corresponding orders of the JCST and STO are hereby set aside. 17. The revision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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