1998 (9) TMI 531 - SC - VAT and Sales Tax

Soybean husk exempt from turnover tax under pulses category. Appeals dismissed, no costs.

Commissioner of Sales Tax, Madhya Pradesh Versus General Foods Private Limited

The Supreme Court upheld the High Court's decision that the husk of soyabean is exempt from turnover tax as it falls under the category of husk of pulses. ... Whether the Board of Revenue was justified in holding that the husk of soyabean was liable to be taxed as the same was not covered by Notification No. 1073-537-V-ST dated 7th April, 1967, as extended from time to time and consequently it was not exempt from payment of turnover tax? Held that:- Appeal dismissed. There being no entry in the Schedule specifically relating to husk, it could, at best, have been taxed under a residuary entry. There is no justification for the argument that the husk of soyabeans falls outside the scope of the said notification because soyabeans have been specifically listed in the Schedule to the Act under the category of oil-seeds. What is relevant for our purposes is to see whether the husk of soyabeans is the husk of a grain or a cereal or a pulse. The final fact finding authority, the Board of Revenue, has held that soyabeans are pulses. The husk of soyabeans, therefore, is the husk of pulses and the notification squarely applies. The Supreme Court of India considered whether the husk of soyabean was exempt from turnover tax under a specific notification. The High Court ruled in favor of the assessees, stating that soyabean husk falls under the exempt category of husk of pulses. The Court dismissed the appeals with no costs.