2007 (7) TMI 585

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....edule "A" of the said Act? It is not disputed by the respondents that maize is a coarse grain. In the Central Sales Tax Act, 1956, Chapter IV relates to goods of special importance in inter-State trade or commerce. Section 14 provides that certain goods can be declared to be of special importance for the purpose of interState trade or commerce. Maize is covered under section 14(i)(vi) of the Central Sales Tax Act, which reads as follows: "14. Certain goods to be of special importance in inter-State trade or commerce.-It is hereby declared that the following goods are of special importance in inter-State trade or commerce: (i) cereals, that is to say,- (i) paddy (oryza sativa L.); (ii) rice (oryza sativa L.); (iii) wheat (t....

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....coarse grain is specifically covered under item No. 13 of Schedule "B" and is, therefore, exempt from tax. On the other hand, the stand of the State is that maize is specifically included under section 14 of the Central Sales Tax Act and is covered under item No. 28 of Part II of Schedule "A" of the H.P. VAT Act, 2005 and is, therefore, chargeable to tax at four per cent. Interestingly, both sides have relied upon the principle "Generalibus specialia derogant"-meaning "Special things derogate from general". Both sides are in agreement that the general entry must yield to the special entry. Whereas the case of the petitioner is that the general entry is item No. 28 in Part II of Schedule "A" and the special entry to which it must yield is it....

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....er to levy any tax on these goods or not. If the State Government wants to levy the tax on these special goods, it can levy tax at any rate not exceeding four per cent. Therefore, it is difficult to accept the argument of the State that section 14 of the Central Sales Tax Act is a special enactment vis-a-vis the item No. 13 of Schedule "B". In fact, in our opinion, the H.P. VAT Act is a selfcontained code. Under Part II of Schedule "A", item No. 28 deals with all goods declared to be of special importance under section 14 of the Central Sales Tax Act and tax at four per cent per annum is payable on these goods. Section 9 of the VAT Act gives power to the State Government to exempt certain goods from payment of tax. The State has in the e....