Fertilizer exemption prevails over later oil-cake tax notification for neem ki khali, absent express withdrawal.

"Neem ki khali" remained exempt as a fertilizer under the unamended exemption notification, because a later notification taxing oil-cakes did not expressly withdraw or modify that protection. The court treated the commodity as commonly used as manure on the evidence and in commercial understanding, and held that a taxing notification cannot impliedly cut down an existing exemption without clear words. It therefore rejected the revision and upheld the Tribunal's view that the commodity was not taxable merely because it could also be described as an oil-cake.

---

---

Issues: Whether "neem ki khali" was liable to sales tax as an oil-cake under the notifications making oil-cakes taxable, or was exempt as a fertilizer under the exemption notification.

Analysis: The exemption notification under section 4 of the Uttar Pradesh Sales Tax Act continued to protect fertilizers unless expressly amended. The later notification making oil-cakes taxable did not amend or exclude oil-cake used as fertilizer from the earlier fertilizer exemption. The commodity was found, on the evidence and in commercial understanding, to be commonly used as manure and not as cattle feed. In fiscal law, an exemption once granted remains operative until withdrawn, and a taxing notification cannot impliedly cut down an existing exemption without clear words.

Conclusion: "Neem ki khali" was held to be exempt from tax as a fertilizer, and not taxable merely because it was also described as an oil-cake.

Final Conclusion: The revision was rejected, and the Tribunal's view granting exemption to "neem ki khali" was upheld.

Ratio Decidendi: Where a commodity falls within an unamended exemption for fertilizers, a later taxing notification covering oil-cakes does not override that exemption unless the exemption is expressly withdrawn or modified.

---