Cattle feed exemption preserved where molasses and salt only improved taste and did not change the product's essential character.

Cattle feed made from rice bran with molasses and salt remained exempt under the relevant notification because the additives were used only to improve taste and did not alter the product's essential character. The assessing authority's narrow view that exemption applied only to rice bran sold in isolation was rejected. The Tribunal's reasoning was approved, and the revision failed. The departmental challenge to the exemption was therefore dismissed, confirming that the composite feed qualified for exemption under the notification.

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Issues: Whether cattle feed containing rice bran mixed with molasses and salt was entitled to exemption under Notification No. II(1)/CTRE 316/79 dated April 12, 1979.

Analysis: The turnover in cattle feed was denied exemption by the assessing authority on the view that the notification applied only when rice bran was sold as cattle feed in isolation. The Tribunal had found, following earlier decisions, that molasses and salt were added only to improve taste and did not alter the essential nature of the cattle feed. The Court approved that reasoning and held that cattle feed consisting of rice bran, molasses and salt fell within the exemption notification.

Conclusion: The cattle feed turnover was exempt and the Tribunal's order granting exemption was in law.

Final Conclusion: The revision failed and the departmental challenge to the exemption was rejected.

Ratio Decidendi: Where additives are included in cattle feed merely for taste and do not change its essential character, the product continues to qualify for exemption under the relevant notification.

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