Chattisgarh High Court

Prabhudas Kishordas Tobacco ... vs Chhattisgarh State Minor Forest ... on 6 January, 2023

                                     1

                                                                       NAFR
        HIGH COURT OF CHHATTISGARH, BILASPUR

                          WPT No. 108 of 2018

1. Prabhudas Kishordas Tobacco Products Private Limited Having Its Office
   At 659/1, Panchawati, Gulbai Tekra, Ellisbridge, Ahemdabad- 380006,
   Gujrat Through Its Power Of Attorney Holder Mr. Baldev Bhai Patel, Aged
   About 61 Years, S/o Kali Das Patel, R/o Rewabai Bhawan, Sheh
   Praladbhai Patel, Marg, Damoh, Madhya- Pradesh, Pin No. 470661.,
   District : Damoh, Madhya Pradesh

2. Mr. Baldev Bhai Patel, S/o S/o Kali Das Patel, Aged About 61 Years R/o
   Rewabai Bhawan, Sheh Praladbhai Patel Marg, Damoh, Madhya Pradesh,
   Pin 470661., District : Damoh, Madhya Pradesh       ---- Petitioners

                                 Versus

1. Chhattisgarh State Minor Forest Produce (T And D) Cooperative Federation
   Limited A- 25 V. I. P. Estate Near V. I. P. Club, Khamardih, Shankar Nagar
   Raipur, Chhattisgarh. Through Its Chairman., District : Raipur, Chhattisgarh

2. The State Of Chhattisgarh, Through The Secretary, Department Of
   Commercial Taxes, Mantralaya, Naya Raipur, Chhattisgarh., District :
   Raipur, Chhattisgarh

                                                             ---- Respondents

WPT No. 109 of 2018

1. J.P. Tobacco Products Pvt. Ltd. Having Its Office At Patharia Pathak, Damoh, (M.P.), Pin No. 470661 Through Its Power Of Attorney Holder Mr. Khoda-Bhai Patel, Aged About 70 Years, So Shivabhai Patel, R/o Sheh Praladbhai Patel Marg, Patharia Pathak, Damoh, (M.P.), District : Damoh, Madhya Pradesh

2. Mr. Khodabhai Patel, S/o Shivabhai Patel, Aged About 70 Years R/o Sheh Praladbhai Patel Marg, Patharia Pathak, Damoh, (M.P.), District : Damoh, Madhya Pradesh

---- Petitioners

Versus

1. Chhattisgarh State Minor Forest Produce (T And D) Cooperative Federation Limited A-25 V.I.P. Estate Near V.I.P. Club, Khamardih, Shankar Nagar (Chhattisgarh) Through Its Chairman., Chhattisgarh

2. The State Of Chhattisgarh Through The Secretary, Department Of Commercial Taxes, Mantralaya, Naya Raipur Chhattisgarh., District :

   Raipur, Chhattisgarh                        ---- Respondents


                           WPT No. 110 of 2018

1. M/s Saha Sales Agency A Registered Partnership Firm Having Its Office At Aurbinda Palli, Siliguri, District Darjelling. (W.B) 734006 Through Its Partner Mrs. Runu Saha, Aged About 45 Years, W/o Shri Amar Saha, R/o 541/53/3/1, Hara Prasad Sarani, Aurbinda Palli, Siliguri, District Darjelling, (W.B), District : Darjeeling, West Bengal

2. Mrs. Runu Saha, W/o Shri Amar Saha, Aged About 45 Years R/o 541/53/3/1, Hara Prasad Sarani, Aurbinda Palli, Siliguri, District Darjelling (W.B), District : Darjeeling, West Bengal

---- Petitioner s

Versus

1. Chhattisgarh State Minor Forest Produce ( T And D) Cooperative Federation Limited A-25 V.I.P. Estate Near V.I.P. Club, Khamardih, Shankar Nagar (Chhattisgarh) Through Its Chairman., Chhattisgarh

2. The State Of Chhattisgarh Through The Secretary, Department Of Commercial Taxes, Mantralaya, Naya Raipur Chhattisgarh., District : Raipur, Chhattisgarh

---- Respondent s

WPT No. 111 of 2018

1. M/s Asma Natural Products A Proprietorship Firm Having Its Office At Mission Hospital Road Bilaspur Chhattisgarh Through Its Partner Mr. Mohammad Altaf, Aged About 42 Years, S/o Mr. Mohammad Nooh, R/o Akbar Khan Ki Chal, Mission Hospital Road, Bilaspur Chhattisgarh., District : Bilaspur, Chhattisgarh

2. Mr. Mohammad Altaf, S/o Mr. Mohammad Nooh, Aged About 42 Years R/o Akbar Khan Ki Chal, Mission Hospital Road, Bilaspur Chhattisgarh., District : Bilaspur, Chhattisgarh

---- Petitioner s

Versus

1. Chhattisgarh State Minor Forest Produce (T And D) Cooperative Federation Limited, A-25 V.I.P. Estate Near V.I.P. Club, Khamardih, Shankar Nagar (Chhattisgarh) Through Its Chairman., Chhattisgarh

2. The State Of Chhattisgarh Through The Secretary, Department Of Commercial Taxes, Mantralaya, Naya Raipur Chhattisgarh., District : Raipur, Chhattisgarh

---- Respondent s

WPT No. 115 of 2018

1. Dayalal Meghji Tobacco Products Pvt. Ltd. Having Its Office At - 3rd Floor,

D. M. Plaza , Chhotapara , Raipur Chhattisgarh -- 492001, Through Its Director - Shri Sudhir Kumar Dayabhai Manik, Aged About 71 Years , S/o Late Shri Dayabhai Manik, Office At 3rd Floor, D M Plaza Chhotapara , Raipur Chhattisgarh 492001., District : Raipur, Chhattisgarh

2. Shri Sudhir Kumar Dayabhai Manik S/o Late Shri Dayabhai Manik Aged About 71 Years Office At - 3rd Floor, D. M. Plaza, Chhotapara, Raipur Chhattisgarh - 492001., District : Raipur, Chhattisgarh

---- Petitioner s

Versus

1. Chhattisgarh State Minor Forest Produce (T And D) Cooperative Federation Limited A - 25 V I P Estate Near V I P Club , Khamardih, Shankar Nagar Chhattisgarh Through Its Chairman., Chhattisgarh

2. The State Of Chhattisgarh Through The Secretary, Department Of Commercial Taxes , Mantralaya Naya Raipur Chhattisgarh., District : Raipur, Chhattisgarh

---- Respondent s

WPT No. 117 of 2018

1. M/s A.S.K. Beedi Leaves A Proprietorship Firm Having Its Office At Mission Hospital Road, Bilaspur, Chhattisgarh. Through Its Partner Mrs. Rubina Altaf, Aged About 37 Years, W/o Mr. Mohammad Altaf, R/o Akbar Khan Ki Chal, Mission Hospital Road, Bilaspur Chhattisgarh., District : Bilaspur, Chhattisgarh

2. Mrs. Rubina Altaf, W/o Mr. Mohammad Altaf, Aged About 37 Years R/o Akbar Khan Ki Chal, Mission Hospital Road, Bilaspur Chhattisgarh., District : Bilaspur, Chhattisgarh

---- Petitioner s

Versus

1. Chhattisgarh State Minor Forest Produce (T And D ) Cooperative Federation Limited, A-25 V.I.P Estate Near V.I.P. Club, Khamardih, Shankar Nagar Chhattisgarh, Through Its Chairaman., Chhattisgarh

2. The State Of Chhattisgarh Through The Secretary, Department Of Commercial Taxes, Mantralaya, Naya Raipur, Chhattisgarh., District : Raipur, Chhattisgarh

---- Respondent s

WPT No. 119 of 2018

1. Asma Natural Product Pvt. Ltd. Having Its Office At Akbar Khan Ki Chal, Mission Hospital Road, Bilaspur Chhattisgarh - 495001 , Through Its Director - Mr. Mohammad Altaf, Aged About 42 Years, S/o Shri. Mohammad Nooh, R/o Akbar Khan Ki Chal , Mission Hospital Road,

Bilaspur Chhattisgarh 495001., District : Bilaspur, Chhattisgarh

2. Mr. Mohammad Altaf S/o Shri Mohammad Nooh Aged About 42 Years R/o Akbar Khan Ki Chal , Mission Hospital Road, Bilaspur Chhattisgarh 495001., District : Bilaspur, Chhattisgarh

---- Petitioners

Versus

1. Chhattisgarh State Minor Forest Produce ( T And D ) Cooperative Federation Limited , A - 25 V I P Estate Near V I P Club , Khamardih, Shankar Nagar Chhattisgarh Through Its Chairman., Chhattisgarh

2. The State Of Chhattisgarh Through The Secretary, Department Of Commercial Taxes , Mantralaya, Naya Raipur Chhattisgarh., District : Raipur, Chhattisgarh

---- Respondent

WPT No. 120 of 2018

1. Dayalal Meghji And Co. And Anothers Having Its Office At 3rd Floor, D M Plaza, Chhotapara Raipur, Chhattisgarh - 492001. Through Its Partner - Shri Sudhir Kumar Dayabhai Manik , Aged About 71 Years, S/o Late Shri Dayabhai Manik , Office At - 3 Rd Floor , D. M. Plaza, Chhotapara , Raipur Chhattisgarh - 492001., District : Raipur, Chhattisgarh

2. Shri Sudhir Kumar Dayabhai Manik, S/o Late Shri Dayabhai Manik Aged About 71 Years Office At - 3rd Floor, D. M. Plaza Chhotapara , Raipur Chhattisgarh - 492001, District : Raipur, Chhattisgarh

---- Petitioner s

Versus

1. Chhattisgarh State Minor Forest Produce ( T And D ) Cooperative Federation Limited , Address - A - 25 V I P Estate Near V I P Club , Khamardih, Shankar Nagar Chhattisgarh Through Its Chairman., Chhattisgarh

2. The State Of Chhattisgarh Through The Secretary, Department Of Commercial Taxes , Mantralaya, Naya Raipur Chhattisgarh., District : Raipur, Chhattisgarh

---- Respondent s

WPT No. 121 of 2018

1. M/s Mohammad Nooh Through Its Proprietor- Shri. Mohammad Nooh, S/o Lt. Mohammad Siddique, Office At- Akbar Khan Ki Chal, Mission Hospital Road, Bilaspur, Chhattisgarh- 495001, District : Bilaspur, Chhattisgarh

2. Shri. Mohammad Nooh, S/o Late. Mohammad Siddique, Aged About 69 Years R/o Akbar Khan Ki Chal, Mission Hospital Road, Bilaspur,

Chhattisgarh., District : Bilaspur, Chhattisgarh

---- Petitioner s

Versus

1. Chhattisgarh State Minor Forest Produce (T And D) Cooperative Federation Limited, A-25 V.I.P. Estate Near V.I.P. Club, Khamardih, Shankar Nagar (Chhattisgarh) Through Its Chairman., Chhattisgarh

2. The State Of Chhattisgarh Through The Secretary, Department Of Commercial Taxes, Mantralaya, Naya Raipur, Chhattisgarh., District : Raipur, Chhattisgarh

---- Respondent s

For Petitioners : Mr. Siddharth Dubey, Advocates For Respondent No. 1 : Mr. A.S. Kachhawaha, Advocate For State/Res. No. 2 : Mr. Chandresh Shrivastava, Addl. A.G.

Hon'ble Shri Justice P. Sam Koshy Order On Board 06.01.2023

1. Since the issue raised in this bunch of Writ Petitions (T) being

common, this bunch of Writ Petitions are being decided by a common

Order of this Court.

2. This issue involved in the present bunch of Writ Petitions (T) is

"whether the 'Tendu Leaves' can be brought within the ambit of the

exemption notification issued by the State Government in exercise of

its power under Section 15B of the Chhattisgarh Value Added Tax

2005" whereby the tax on Minor Forest Produce has been reduced to

5% whereas the tax on 'Tendu Leaves' was at 25%. A bunch of Writ

Petitions (T) were earlier taken up for hearing by this Court and were

allowed by the Judgment dated 12.03.2018 the leading case being

WPT No. 126/2014 and other connected matters. The Judgment of

this Court was subjected to challenge before the Division Bench in

Writ Appeal No. 675/2018 and other connected Appeals. The Writ

Appeals of the State stood allowed vide Judgment dated 07.01.2019

while setting aside the order of the Single Bench, the Division Bench

in paragraph 24 to 28 has held as under.

"24. An exemption notification is not like a blackhole that it will suck out all entries given in the taxing statutes even though those goods and items are specifically notified and stand as they are without being altered or modified or indicated in the exemption notification. When they are specific taxable goods which are stand alone entries and are identifiable as such of commercial value, then unless the exemption notification specifically touches upon such entries for the benefit of exemption or concession, the Courts will not rush in to bring all such items which can fit into the general notification even though those items may come within a broad definition.

25. Keeping in mind the propositions of law and the well-settled principle that while interpreting different entries, attempts shall be made to find out whether the same answers the descriptions of the contents of the basic entry and only if it is not possible to do so, that recourse to residuary entry should be taken as a last resort.

26. Since the notification extending benefit of 5% VAT has been issued by the State only for minor forest produce and the entry 'Tendu leaves' stands untouched as an item of highest incidence of tax and has been clubbed with some such goods like diesel, petrol, aviation fuel, etc., entries in Part III of Schedule II cannot be pulled out and read into a general notification with the object of extending benefit of the said notification.

27. We are satisfied that serious error of interpretation has been committed by the learned Single Judge by treating the Tendu leaves as a minor forest produce to allow benefit of reduced rate of tax at 5% when the said Schedule in VAT Act still stands and the incidence of tax shown therein is 25%.

28. The writ appeals therefore stand allowed. The impugned order dated 12.03.2018 of the learned Single Judge stands set aside."

3. The same view has further been again reiterated by the Division

Bench recently in Writ Appeal No. 645/2018 decided on 04.01.2022

wherein again relaying upon the earlier decision of this Court, the Writ

Appeal of State again stood allowed and the Writ Petitions were

ordered to be dismissed.

4. Given the fact, the Division Bench has in the aforementioned Bunch

of Writ Appeals allowed the Appeals of the State Government and

have dismissed the respective Writ Petitions holding that the said

exemption notification would not be applicable for the 'Tendu Leaves'.

The issue having since been settled by the Division Bench, this Court

is inclined follow the same view taken by the Division Bench and as a

consequence, all these Writ Petitions (T) claiming for the same relief

flowing from the exemption notification therefore, deserves to be and

is accordingly rejected. No order as to cost.