Inclusive exemption for cattle fodder covered cattle feed until later exclusion took effect prospectively.

An inclusive exemption entry for "cattle fodder" was held to cover cattle feed sold as "Parag Pashu Aahar" because the term was given wide trade meaning and was not confined to roughage; the product was admittedly fed to cattle and was not expressly excluded under the 1985 notification, so it remained exempt from trade tax. The later notification of 1 October 1994, which specifically excluded cattle feed, was held to operate prospectively only and could not be applied to earlier assessment years. Accordingly, the turnover of cattle feed for the years in question was not liable to tax.

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Issues: (i) Whether cattle feed sold as "Parag Pashu Aahar" fell within the expression "cattle fodder" under the exemption notification dated June 5, 1985 and was therefore exempt from trade tax; (ii) whether the subsequent notification dated October 1, 1994 excluding cattle feed operated only prospectively and could not govern the assessment years in question.

Issue (i): Whether cattle feed sold as "Parag Pashu Aahar" fell within the expression "cattle fodder" under the exemption notification dated June 5, 1985 and was therefore exempt from trade tax.

Analysis: The expression "cattle fodder" in the 1985 notification was held to be of wide import and not confined to roughage alone. The notified entry itself was inclusive in character and covered several concentrated items such as de-oiled cake, de-oiled rice polish, de-oiled rice bran and de-oiled rice husk. Relying on prior authorities, the Court treated cattle feed as food supplied to cattle in the general and trade sense, including concentrated and nutrient-rich feed used for maintenance and production purposes. Since the product sold by the assessee was admittedly fed to cattle and was not specifically excluded by the 1985 notification, it fell within the exempt category.

Conclusion: The cattle feed sold as "Parag Pashu Aahar" was cattle fodder and was exempt from tax under the 1985 notification.

Issue (ii): Whether the subsequent notification dated October 1, 1994 excluding cattle feed operated only prospectively and could not govern the assessment years in question.

Analysis: The later notification expressly amended the earlier exemption entry to exclude cattle feed with effect from October 1, 1994. That amendment showed that cattle feed had been covered by the earlier entry until the date of exclusion. As the assessment years involved were prior to the effective date of the exclusion, the later notification could not be applied retrospectively to deny exemption for those years.

Conclusion: The exclusion of cattle feed by the 1994 notification was prospective only and did not affect the assessee for the years under consideration.

Final Conclusion: The turnover of cattle feed was not liable to tax for the assessment years in question, and the Tribunal's order could not be sustained.

Ratio Decidendi: Where an exemption entry uses an inclusive description of cattle fodder and does not expressly exclude cattle feed, feed supplied to cattle in ordinary trade sense remains exempt until a later amendment prospectively removes it from the exemption.

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