By C. B. Thakar Advocate G. G. Goyal
Janak Vaghani Chartered Accountants
fiogf49gjkf0d
Sales Tax – Sale of “Feed Supplements” – Covered by the Term “Poultry Feed” – Exempt From Payment of Tax, Entry 53 of Schedule B to The Haryana General Sales Tax Act, 1973.
FACTS
The respondent Company was assessed for the year 1996-1997 treating sale of “Feed Supplements” tax free covered by the term“poultry feed” falling in entry 53 of Schedule B to the Haryana General Sales Act, 1973. Subsequently the assessment order was revised by holding that sale of one or other constituent of “Poultry Feed” could not be taken as poultry Feed and levied tax. The Tribunal allowed the appeal and restored the assessment order allowing claim of tax free sales. The State filed appeal against thejudgment of Tribunal before The Punjab and Haryana High Court.
HELD
The benefit of exemption is given on the ground that the sale of feed supplements such as protein, salts and minerals, vitamins, antibiotics, etc., would also constitute “Poultry Feed”. The very fact that each of the feed supplements can individually be given to the cattle, shall not exclude such feed from the exemption clause as object of giving exemption to the “poultry Feed” under the Act is to promote sale of “poultry feed/Supplements”. Consequently, the High Court found that no substantial question of law required for consideration by it. Accordingly, the appeals were dismissed by the High Court.
