2006 (9) TMI 509

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..... cases filed by the State is whether the Tribunal was justified in granting exemption to respondent/assessee on sales turnover of chicks and chicken brought from outside State and sold in Kerala based on entry 24 of the Third Schedule to Notification S.R.O. No. 1727 of 1993. For easy reference, the relevant entry of the notification is extracted hereunder: Sl.No. Name of dealer Turnover ....

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.... including sales turnover of chicks and chicken brought by petitioner from outside Kerala. Learned Special Government Pleader contended that the description of "dealer" in the above notification clearly conveys the idea that exemption is for poultry farms and hatcheries producing goods within the State. Therefore, he has contended that when the poultry farm acts as a trader by making inter-Stat....

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....e are of the view that the notification has to be understood with reference to its object which is clear from the notification itself. The dealer who is granted exemption is poultry farmer or hatchery in the State. Turnover of such dealer obviously is the turnover of chicks raised in the hatchery or chicken reared in the poultry farm in the State. In fact, a poultry farmer or hatchery is not treat....

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....ngage in trading of chicks and chicken brought from outside Kerala without payment of tax, but when trader brings chicks and chicken and sells the same in the State, he will be liable to tax. We do not think this is the scope of the notification and to our mind, turnover of chicks and chicken by poultry farmers in the State under Notification S.R.O. No. 1727 of 1993 only applies to chicks raised i....