KAMLA FLOOR MILLS Vs. CTO

JUDGEMENT

(1.) Heard learned counsels for the parties. The petitioner-assessee has filed present revision petition being aggrieved by the order of the Tax Board dated July 29, 2009 whereby the Tax Board allowing the Revenue's appeal set aside the order of the appellate authority dated March 22, 2007 and affirmed the impugned assessment order dated March 22, 2005 for assessment year 2002-03 (April 1, 2002 to March 31, 2003).

(2.) The question of law raised by the petitioner-assessee in the present revision petition is that the assessee purchased wheat (rejected/damaged) during the relevant period for animal feed purpose only, and not for human consumption as exempted from the sales tax from various dealers of Punjab; and therefore, they were not taxable within the State of Rajasthan, the cattle feed being exempted under the goods notified vide Notification (S. No. 1027:F.4(25) FDGr.IV/92-Pt.II-21 dated September 28, 1995, of which item No. 8 in the said exemption notification read "cattle feeds excluding gowar, cottonseed, oil cake and deoiled cake".

(3.) The learned counsel for the petitioner-assessee, Mr. Avinash Acharya, relying upon the decision of the honourable Supreme Court in the case of Commissioner of Sales Tax, U. P. v. Ram Chandra Asha Ram (Deed.) through LRs., 2001 123 STC 415 submitted that damaged wheat unfit for human consumption, processed and used as food for cattle, has been held to be cattle fodder exempted from the tax by the honourable Supreme Court in the aforesaid judgment. Therefore, the cattle feed purchased by the assessee in the form of damaged/rejected wheat from the dealers of Punjab, could not be taxed in his hands; and the learned Tax Board has erred in allowing the Revenue's appeal by the impugned order dated July 29, 2009 and restoring the order of the assessing authority.