Balanced poultry feed exemption includes essential supplements and concentrates used for proper nutrition and production.

Poultry feed supplements and concentrates were construed in their commercial and practical sense as part of "balanced poultry feeds" under the exemption notification dated 31-1-1985. The court held that ordinary maintenance feed is different from a balanced feed, which includes vitamins and concentrates needed for proper nutrition, health and production, including egg-laying capacity. Because such concentrates are essential to nutritional balance, they fall within the exemption entry and cannot be treated as merely separate feed items. The turnover of the poultry feed supplements was therefore exempt, and the assessment and recovery could not be sustained.

---

---

Issues: Whether poultry feed supplements or concentrates fall within the expression "balanced poultry feeds" in entry No. 5 of the notification dated 31-1-1985 and are therefore exempt from tax.

Analysis: The expression "balanced poultry feeds" was construed in its commercial and practical sense. Ordinary feed used only for maintenance was held to be different from a balanced feed, which includes vitamins and concentrates necessary for proper nutrition, health and production, including egg-laying capacity. The court found that concentrates added to poultry feed make it a balanced poultry feed, and without such concentrates the feed cannot be so regarded.

Conclusion: Poultry feed supplements and concentrates are included in "balanced poultry feeds" and the turnover of such concentrates is exempt under entry No. 5 of the notification dated 31-1-1985.

Final Conclusion: The assessment and recovery made on the turnover of poultry feed supplements could not be sustained, and the petitioner obtained exemption relief.

Ratio Decidendi: For exemption entries relating to balanced poultry feeds, supplements and concentrates that are essential to nutritional balance and production are covered by the expression and cannot be excluded as mere maintenance feed.

---