STATE OF CHHATTISGARH THROUGH SECRETARY, GOVERNMENT OF CHHATTISGARH Vs. SAJ FOOD PRODUCT (P) LTD THROUGH ITS GENERAL MANAGER

JUDGEMENT

(1.) The batch of writ appeals arose out of common order and judgment dated 05.03.2018 passed by the Learned Single Judge who clubbed all the writ applications together, heard the same and allowed the writ applications by the impugned order which is under challenge on behalf of the State.

(2.) The issue before the Learned Single Judge was whether Rusk/Toast would fall under Entry 7 under the head "Bread" under Schedule I of the Chhattisgarh Value Added Tax Act, 2005 (hereinafter referred to as 'the VAT Act, 2005') or whether those items would be required to be dragged into residuary entry under Part IV of Schedule II of the said Act.

(3.) An effort was made by the Assessing Authorities of the Sales Tax Department to levy and assess tax under the VAT Act, 2005 upon two items namely, Rusk/Toast which were either being produced or marketed by the writ petitioners. The Schedule I of the Act deals with goods which are treated as tax free goods. The rate of taxation, therefore, is zero percent on the items notified in the said Schedule. There is a long list of 63 items which the Taxing Authorities have decided not to levy tax on, Schedule II of the VAT Act, 2005 have 4 parts. The goods notified under different parts are clubbed on the basis of rate of taxation which is leviable upon them. In Part IV of Schedule II there is an entry which reads:- " All other goods not included in schedule I and in part II and part III of this Schedule" which is being referred to as the residuary entry.