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of <h1>Interpretation of Kerala Sales Tax Exemption for Poultry Farmers: Notification Upheld</h1> <h3>M/s. Selvam Broilers (P) Ltd. MA. Subaidabegun Versus State of Kerala</h3> M/s. Selvam Broilers (P) Ltd. MA. Subaidabegun Versus State of Kerala - TMI Issues:Interpretation of exemption notification for poultry farmers and hatcheries under the Kerala General Sales Tax Act, 1961.Analysis:The Supreme Court, in a judgment delivered by H. L. Dattu, CJ and Arun Mishra, JJ, addressed the issues raised in Civil Appeal No.1654 of 2008 concerning the interpretation of an exemption notification under the Kerala General Sales Tax Act, 1961. The case involved M/s. Selvam Broilers Pvt. Ltd., a registered dealer engaged in poultry farming activities. The assessing authority had considered the one-day chicks purchased from outside the State and reared within the State as taxable under the KGST Act. The Tribunal partially allowed the appeal by granting exemption under a notification for sales of chicks and chickens. However, the High Court, considering the objective of the notification to promote local poultry farmers, overturned the Tribunal's decision, leading to the appeal before the Supreme Court.Upon examining the notification, the Court emphasized that the language was clear and unambiguous, exempting the turnover from sales of chicks and chickens by poultry farmers and hatcheries within the State. The Court rejected the State's argument to consider the object of the notification for interpretation, citing precedents that exemption provisions must be construed strictly. The Court highlighted that the notification did not exclude dealers who imported or purchased chicks from outside the State, as long as they reared and sold them within the State, as per the notification's terms.Consequently, the Supreme Court held that the High Court erred in allowing the Revision Petition and reinstated the Tribunal's order. The Court concluded by setting aside the High Court's judgment and restoring the Tribunal's decision in favor of the appellant, M/s. Selvam Broilers Pvt. Ltd. The Civil Appeals were disposed of accordingly, affirming the applicability of the exemption notification to the dealer's activities as per the clear language of the notification without delving into the object and purpose behind its issuance.
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