Purchase tax exemption on paddy prevailed where the notification expressly excluded levy and precedent was distinguishable.

A valid exemption notification expressly excluding tax on purchase of paddy prevented purchase tax from being levied on paddy bought for processing and sale of rice. The Tribunal's deletion of the addition was sustained because the Revenue's reliance on a Supreme Court precedent was found distinguishable and not applicable to the State trade tax regime. The Court also followed its prior common decision in identical matters, confirming that the exemption notification governed the assessment outcome and that the revision failed.

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Issues: Whether purchase tax was leviable on paddy purchased by the assessee for processing and sale of rice, and whether the Tribunal was justified in deleting the addition in view of the exemption notification.

Analysis: The controversy related to the purchase of paddy during the relevant assessment year. The Tribunal had deleted the levy on the footing that the notification issued by the State expressly granted exemption from tax on purchase of paddy, and that the observations relied upon by the Revenue from the cited Supreme Court decision were distinguishable and not applicable to the State trade tax regime. The revision was also considered in light of the prior common decision of the Court in identical matters, which had sustained the Tribunal's view.

Conclusion: The levy on purchase of paddy was not sustained and the Tribunal's order deleting the addition was upheld. The revision was dismissed, in favour of the assessee.

Ratio Decidendi: Where a valid exemption notification expressly excludes tax on purchase of paddy, the purchase tax cannot be levied merely on the basis of a distinguishable precedent.

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