Tendu Leaves, Not A Minor Forest Produce, Vat Payable @25%

State of Chhattisgarh Vs M/s Shobha Enterprises (Chhattisgarh High Court)

Conclusion- Tendu leaves has separate entry, wherein, VAT is payable @25% and the same cannot be clubbed in general entry ‘minor forest produce’ for availment of reduced rate exemption notification.

FACTS –

Assessee entered into an agreement with the Chattisgarh State Minor Forest Produce for purchase of Tendu leaves. As per the agreement, the purchaser i.e. the assessee had to pay VAT.

On 1^st April, 2006, the State Government issued a notification listing goods which were either granted part or full exemption. Vide the said notification, the rate of minor forest produce was notified as 5%. However, the Chattisgarh State Minor Forest Produce imposed 25% VAT on the assessee on purchase of Tendu leaves.

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