Strict construction of exemption notifications defeats concessional tax claim for Tendu leaves against a specific taxable entry.

The Chhattisgarh VAT framework treated goods in Schedule I as tax-free and goods in Schedule II as taxable at specified rates, with Tendu leaves listed separately in Part III of Schedule II at the highest rate. A notification granting concessional tax on minor forest produce under Section 15-B was framed in general terms and did not expressly include Tendu leaves. Because exemption notifications are construed strictly, and a specific taxable entry prevails over a broad general description, the concession could not be extended by implication. The reduced rate therefore did not apply to Tendu leaves, and the higher tax treatment was upheld.

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Issues: Whether the notification granting concessional tax on minor forest produce under Section 15-B of the Chhattisgarh Value Added Tax Act, 2005 extended to Tendu leaves notwithstanding their separate classification as a taxable item in Part III of Schedule II at the highest rate of tax.

Analysis: The statutory scheme treated goods in Schedule I as tax-free and goods in Schedule II as taxable at the rates specified therein. Tendu leaves were separately placed in Part III of Schedule II as a distinct taxable item carrying the highest incidence of tax. The notification under Section 15-B was framed for minor forest produce in general, but it did not specifically include Tendu leaves. In taxing statutes, exemption notifications are construed strictly, and where a statute contains both a general expression and a specific entry, the specific provision prevails over the general one. A broad description in an exemption notification cannot override a distinct taxable entry that the legislature has left untouched.

Conclusion: The concessional notification did not apply to Tendu leaves, and the claim for the reduced rate of tax failed.

Final Conclusion: The separate taxable entry for Tendu leaves controlled the matter, and the challenge to the higher rate of tax was rejected in favour of the Revenue.

Ratio Decidendi: A general exemption notification cannot displace a specific taxable entry, and exemption notifications must be interpreted strictly against expansion by implication.

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