COMMISSIONER, COMMERCIAL TAX INDORE Vs. BHAGWAN DAS AGRAWAL

JUDGEMENT

(1.) THIS is an application made by the revenue under Section 70(2) of the M.P. Commercial Tax Act, 1994 making reference with regard to the following question of law.

(2.) FACT goes to show that respondent assessee was a registered dealer in accordance to the provisions of the M.P. Commercial Tax Act and was engaged in the business of purchase and sale of cereals, pulses and oil seeds. The establishment was assessed for payment of commercial tax for the period 01 -04 -1998 to 31 -03 -1999 and an order of assessment was passed on 15 -02 -2002 and the assessee was required to pay tax to the tune of Rs.48831/ -. The Assessing Officer in the order in question dated 15 -02 -2002 disallowed certain claim in the matter of exemption from payment of tax on Maize said to have been sold by the assessee to Poultry Farm/Dairy farms on the ground that the same cannot be exempted under Notification No. 110 dated 10 -12 -1997 (Annexure A -1) as the requisite declaration form has not been submitted. The Assessing Officer disallowed the aforesaid exemption only on the ground that on declaration as appended to the notification has not been submitted. Appeal and revision having been dismissed the matter went to the M.P. Appellate Board, Bhopal and the Appellate Board has found that Poultry and Dairy Farms are consumers of the product in question and therefore, sale to consumers is exempted and for the previous year also exemption on this ground was granted, accordingly the assessee was entitled for exemption and the Appellate Board allowed the appeal and when a reference was sought from the appellate Board, it was also rejected and therefore, this application by the revenue directly to this court under Section 70(2) of the M.P. Commercial Tax Act.

(3.) HAVING heard the learned counsel for the parties and on perusal of the Notification bearing No. 110 dated 10 -12 -1997, we find that in Entry No. 28 of Part V to Schedule II, cereals and foods grains have been granted exemption and in the column with regard to restrictions and conditions of such exemption, it is only indicated that if the goods specified in column (2) are sold by a registered dealer under the Adhiniyam, they are entitled for exemption. However, with regard to Entry 29 of Part -IV of Schedule II of the Adhiniyam in the column pertaining to restriction and conditions subject to which exemption is granted a specified provision is made with regard to submission of declaration. It is the case of the assessee that the declaration is only with regard to item covered under Entry No. 29 and not to Entry No. 28, and there is no provision of declaration with regard to items mention in Entry No. 28. The declaration as is seen from the notification appended to Items in Entry No. 29 and therefore, the appellate Board has not committed any error while granting exemption to the appeppant and we answer the question refereed to us by holding that in the facts and circumstances of the case, the Board has not committed any error and is justified in holding that the sale of sale of maize to Poultry/ Dairy Farms are exempted.