TaxTMI 
TaxTMI 
TaxTMI 
2018 (3) TMI 1716
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....ation issued by the State Government in exercise of its powers under Section 15(B) of the Chhattisgarh Value Added Tax Act, 2005 whereby tax on minor forest produce has been reduced to 5%. 3. The facts of the case, in nutshell, are that all the petitioners in the present petitions are engaged in the business of Tendu leaves. Each of the petitioners had entered into an independent purchase agreement with the CG State Minor Forest Produce (Trading & Development) Cooperative Federation Limited authorizing the petitioners to purchase Tendu leaves. As per the purchase agreement, each of the purchasers had to pay VAT under Chhattisgarh VAT Act at the rate as prescribed by the State Government from time to time. Schedule 2 of the VAT Act prescribes the rate of tax that would be applicable. Part-III of Schedule-II has a specific entry at serial no.5 i.e. Tendu leaves and the rate prescribed is 25%. Section 15B of the CG VAT Act which is a saving clause empowers the State Government, by notification as may be specified therein, to grant exemption prospectively or retrospectively in whole or in part from the payment of tax under this Act, for such period as may be specified in the notificat....
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....aha also relied upon the arguments raised by the State counsel and submitted that it was agreed between the parties that they would pay taxes as fixed by the Govt. from time to time and since Tendu leaves find place in Part-III of Schedule-II, the rate of tax levied has to be as fixed under the Schedule unless specifically altered. According to the counsel for respondent no.1, a general notification by itself would not affect the specific entry made, unless the notification also refers or deals with the specific entry also. 8. According to counsel for the respondents, it has to be construed as if there is a deliberate exclusion of Tendu leaves from the notification issued under Section 15-B of the VAT Act. He relied upon the judgments of Supreme Court in cases of 2008(5)SCC-680, Mauri Yeast India Pvt. Ltd. Vs. State of Uttar Pradesh and Another, 2014(8) SCC-319, Commercial Tax Officer, Rajasthan Vs. Binani Cement Ltd. & Another, and 2015(15) SCC-455, Larsen & Toubro Ltd. and Another Vs. Commissioner of Central Excise, Hyderabad. 9. Having heard the contentions put forth by the counsel for the parties, what is not in dispute is that all the petitioners have entered into an agreeme....
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....ies of products which are otherwise minor forest produce such as Entry 17-Bamboo, Entry-54 Herb, bark, dry plant and dry root, Entry-55 Honey and Entry-109 Tamarind, tamarind seed and powder. 15. Coming to the legal position if we look at the judgment of the Supreme Court in the case of M/s Zunaid Enterprises & Ors. Vs. Stated of Chhattisgarh & Ors, 2012 SCC OnLine SC 187 and (2012) 50 VST 7 (SC) decided on 23.02.2012, it would reflect that Tendu leaves being minor forest produce stood established from the fact that the Chhattisgarh State Minor Forest Produce (Treading and Development) Cooperative Federation Limited have initiated the tender process for sale of Tendu Leaves which establishes the fact that Tendu Leaves are minor forest produce. If we look into the facts of the instant case, it would establish that the respondent no.1 is the same Federation which had published tender earlier also for purchase and sale of Tendu Leaves stocked by the Federation. What further has to be understood is that the applicability of exemption notification issued from time to time will be applicable only to those goods or class of goods which are exigible to tax as specified in Schedule-II of t....
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....he same answers the descriptions of the contents of the basic entry or not. However, if we look into the principles of law laid down in the said judgment, it would clearly reflect that when two views are possible, the one which favours the assessee should be adopted. In paragraphs 34 & 48 of the said judgment it has been held as under: "34. It is now a well-settled principle of law that in interpreting different entries, attempts shall be made to find out as to whether the same answers the description of the contents of the basic entry and only in the event it is not possible to do so, recourse to the residuary entry should be taken by way of last resort. 48. There cannot be any quarrel with the proposition that construction of the word is to be adopted to the fitness of the matter of the statute. But for determining the said question, several factors which would be relevant are required to be gone into. The trade or commercial meaning or the end-user context would, thus, be a relevant factor." 18. Once when a generic term has been used by the legislature, it has to be construed as if the legislature meant all those items which fall under the said generic term which in the i....