Strict construction of tax concession notifications excludes skimmed milk powder from reduced rate relief.

A tax concession notification must be construed strictly on its plain language, and its scope cannot be enlarged by reading beyond the words used. Skimmed milk powder was not covered by the concessional notification that applied to milk food and, later, only to baby milk foods. The fact that the schedule entry referred to milk foods including milk powder did not make milk powder identical to milk food for all purposes. The higher tax rate of 10% under the relevant schedule entry was therefore upheld, and the assessment treating skimmed milk powder as taxable at that rate was sustained.

---

---

Issues: Whether skimmed milk powder sold by the assessee was entitled to the reduced rate of tax under the notification granting concessional tax on sale of milk food including baby milk foods, and whether the levy of tax at 10% under the relevant schedule entry was justified.

Analysis: The notification issued under Section 17 of the Tamil Nadu General Sales Tax Act, 1959 granted a reduced rate of tax for milk food and baby milk foods, but the benefit was later restricted only to baby milk foods. A notification granting exemption or reduction in tax rate must be construed strictly and by its plain language. The relevant schedule entry taxed milk foods including milk powder at 10%, and the inclusion of milk powder in that entry did not mean that milk powder and milk food were identical for all purposes. No words could be added to extend the concessional notification beyond its express terms.

Conclusion: Skimmed milk powder did not qualify for the reduced rate under the notification, and its taxation at 10% was upheld.

Final Conclusion: The revision failed and the assessment treating skimmed milk powder as taxable at the higher rate was sustained.

Ratio Decidendi: A tax concession or exemption notification must be interpreted strictly on its plain language, and an inclusive schedule entry cannot be used to enlarge the scope of the concession beyond the words actually employed.

---