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of <h1>Court rules fresh and dried singhada tax-exempt under MP Vanijyik Kar Adhiniyam, 1994</h1> <h3>Munnalal Agarwal and another Versus State of Madhya Pradesh and another</h3> The court held that singhada, whether fresh or dried, remains exempt from commercial tax under the Madhya Pradesh Vanijyik Kar Adhiniyam, 1994. The State ... - Issues:Challenge of imposition of commercial tax on singhada under Madhya Pradesh Vanijyik Kar Adhiniyam, 1994 - Interpretation of tax-free goods under section 15 of the Adhiniyam - Determination of tax liability on singhada irrespective of being fresh or dried - Validity of notification including singhada in Schedule II as taxable kirana goods.Analysis:The petitioners contested the imposition of commercial tax on singhada, claiming it was exempted under section 15 of the Madhya Pradesh Vanijyik Kar Adhiniyam, 1994. The respondents justified the tax levy on 'dry' singhada by referring to Schedule II of section 9 of the Adhiniyam, listing singhada as kirana goods subject to tax. The central issue was whether singhada, regardless of being 'dried,' was taxable under the Adhiniyam.Section 15 of the Adhiniyam pertains to tax-free goods, stating that no tax shall be payable on goods listed in Schedule I. The State Government can only amend Schedule I to add goods or relax conditions, not exclude tax-free items. The inclusion of singhada in Schedule II as kirana goods conflicted with its tax-free status in Schedule I, rendering the notification invalid.The entry in Schedule I exempting singhada includes it among fresh vegetables, distinct from dried items like ginger. The legislative history supports that singhada was initially tax-free and later clubbed with other produce in Schedule I without limiting the exemption to fresh singhada. The Commissioner's clarification attempting to tax singhada was deemed unauthorized, affirming that both fresh and dried singhada are tax-exempt.The judgment concluded that singhada, whether fresh or dried, remains exempt from tax, and the State Government exceeded its authority by including it in Schedule II as taxable kirana goods. The petitions were allowed, absolving the petitioners from tax liability on singhada sales and purchases, irrespective of its state of freshness.
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