Exemption for Balanced Poultry Feeds includes poultry feed supplements, so contrary sales tax notices could not be sustained.

Poultry feed supplements were treated as covered by the exemption entry for "Balanced Poultry Feeds" under the 31 January 1985 notification, because an earlier Division Bench had already construed the entry that way. The HC followed that binding interpretation and found that notices issued on the contrary premise under the U.P. Sales Tax Act and the Central Sales Tax Act could not stand. Relief for assessment year 1985-86 was not pursued because the consequential assessment had already been quashed, and the writ challenge succeeded against the notices.

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Issues: Whether poultry feed supplements were covered by Entry No. 5 of the notification dated 31.1.1985 exempting "Balanced Poultry Feeds", and whether the impugned notices under Section 10-B of the U.P. Sales Tax Act and the Central Sales Tax Act were liable to be quashed.

Analysis: The issue was governed by an earlier Division Bench view of the same Court holding that poultry feed supplements fall within the scope of the exemption entry for "Balanced Poultry Feeds" under the notification dated 31.1.1985. Following that binding view, the Court accepted that the impugned notices proceeded on a basis contrary to the settled interpretation of the exemption entry. The petitioner did not press relief for assessment year 1985-86 because the consequential assessment for that year had already been quashed.

Conclusion: Poultry feed supplements were held to be covered by the exempted entry, and the impugned notices were quashed.

Final Conclusion: The writ petition was allowed and the challenge to the notices succeeded on the footing that the goods fell within the exemption entry.

Ratio Decidendi: Where an exemption entry for "Balanced Poultry Feeds" has already been judicially construed to include poultry feed supplements, notices founded on the contrary view cannot be sustained.

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