Rice bran exemption denied where notification covered only husk and treated bran as a distinct taxable commodity

An exemption notification covering the husk of specified grains did not extend to rice bran because husk and bran were treated as distinct commodities in commercial understanding and by the manufacturing process. Rice bran is obtained during polishing of rice, not as the husk removed from paddy, and the separate mention of bran in the notification showed that only husk was exempted. Rice bran therefore remained taxable, and the exemption claim failed.

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Issues: Whether rice bran was covered by the exemption notification for the husk of all grains, cereals, pulses and rice, and therefore not liable to tax.

Analysis: The notification exempted husk of specified grains, while bran was separately mentioned. The earlier decisions relied upon held that husk and bran are distinct commodities in commercial and dictionary understanding. Rice bran is obtained during the polishing of rice and is not the husk removed from paddy. The separate mention of bran in the notification indicated that the exemption was confined to husk and did not extend to bran.

Conclusion: Rice bran was not covered by the exemption for husk and remained taxable. The question was answered in favour of the Revenue and against the assessee.

Ratio Decidendi: Where an exemption notification separately enumerates husk and bran, bran cannot be treated as husk for the purpose of exemption if commercial understanding and the manufacturing process show the two to be distinct commodities.

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