Vegetable seed classification upheld for arkil and born villa seeds under the exemption notification

Arkil and born villa seeds were treated as vegetable seeds within the scope of the 31 January 1985 exemption notification and were therefore exempt from trade tax. The classification was supported by certificates from the Directorate of Horticulture, evidence from a horticulture expert, and accounting records showing separate treatment of these seeds from matar. The court accepted the concurrent factual finding that the seeds were used to raise plants producing vegetable pods, and held that their possible association with food preparation did not alter their essential character. The Revenue's challenge failed because no contrary evidence displaced the record-based finding.

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Issues: Whether arkil and born villa seeds were vegetable seeds covered by the exemption notification dated 31 January 1985 and, if so, whether they were exempt from trade tax.

Analysis: The exemption notification extended to vegetable seeds. On the evidence placed before the authorities, including certificates from the Directorate of Horticulture and a horticulture expert, and the accounting records showing separate treatment of arkil and born villa seeds from matar, the goods were found to be vegetable seeds used for raising plants to produce vegetable pods. The finding of the first appellate authority, affirmed by the Tribunal, was supported by material on record and there was no contrary evidence to dislodge it. Merely because the seeds could also be associated with preparation of food items did not change their essential classification.

Conclusion: Arkil and born villa seeds were held to be vegetable seeds exempt under the notification, and the challenge by the Revenue failed.

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