Specific exemption entry prevails over general taxable entry: maize held exempt from VAT under the H.P. Value Added Tax Act.

Maize, being a coarse grain and a declared good under the Central Sales Tax Act, was held to fall within the specific exemption for coarse grains in item No. 13 of Schedule "B" of the H.P. Value Added Tax Act, 2005. The court applied the principle that a specific exemption entry prevails over a general taxable entry covering declared goods, so the general four per cent taxable entry in item No. 28 of Part II of Schedule "A" did not apply. Maize was therefore exempt from VAT.

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Issues: Whether maize, being a coarse grain and a declared good under the Central Sales Tax Act, is exempt from tax under item No. 13 of Schedule "B" of the H.P. Value Added Tax Act, 2005 or taxable at four per cent under item No. 28 of Part II of Schedule "A" of the said Act.

Analysis: Maize is a coarse grain and is also a declared good under section 14 of the Central Sales Tax Act, 1956, on which section 15 places a ceiling of four per cent on State taxation. The H.P. Value Added Tax Act, 2005 is treated as a self-contained taxing code, with item No. 28 of Part II of Schedule "A" covering declared goods generally and item No. 13 of Schedule "B" specifically exempting coarse grains other than paddy, rice and wheat. Applying the principle that the special entry prevails over the general entry, the specific exemption for coarse grains governs maize.

Conclusion: Maize falls within item No. 13 of Schedule "B" of the H.P. Value Added Tax Act, 2005 and is exempt from tax.

Final Conclusion: The writ petitions were allowed, and maize was held not liable to VAT under the general taxable entry.

Ratio Decidendi: Where a taxing statute contains a specific exemption entry for a commodity, that specific entry prevails over a general taxable entry covering declared goods, and the commodity is exempt accordingly.

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