Reserved on 16.9.2025 Delivered on 19.9.2025 HIGH COURT OF JUDICATURE AT ALLAHABAD Sales / Trade Tax Revision No. 154 of 2025 The Commissioner, Commercial Tax, UP, Lucknow …..Revisionist(s) Versus S/S International Agro Foods …..Opposite Party(s) Counsel for Petitioners(s) : Mr. Bipin Kumar Pandey, ACSC Counsel for Respondent(s) : Mr. Nishant Mishra, Ms. Vedika Nath Court No. - 7 HON’BLE PIYUSH AGRAWAL, J. 1. Heard Mr. B.K. Pandey, learned ACSC for the State-revisionist and Ms. Prerna Surolia holding brief of Mr. Nishant Mishra, learned counsel for the respondent. 2. By means of present revision, the revisionist is assailing the order dated 7.3.2025 passed by the Commercial Tax Tribunal, Bench -I, Ghaziabad, in Second Appeal No. 57 of 2025 (A.Y. 2016-17). 3. The present revision has been admitted vide order dated 8.7.2025 on the following substantial questions of laws:- “1. Whether on the facts and circumstances of the case the Commercial Tax Tribunal was legally justified in holding that commodity sold by the dealer is not bone meal as held by the assessing authority and is poultry feed supplement as claimed by the dealer ? 2 STTR No. 154 of 2025 2. Whether on the facts and circumstance of the case the Commercial Tax Tribunal was legally justified in holding that the meat bone meal and poultry feed supplements are one and same commodity although they are different in nature and assessee is not manufacturer of poultry feed supplements? 3. Whether on the facts and circumstances of the case the commercial tax tribunal committed manifest illegality in altogether ignoring the fact that the dealer / assessee in fact was selling meat bone meal to manufacturer of poultry feed supplement and was not himself dealing in manufacturing off poultry feed supplement? 4. Whether on the facts and circumstances of the case, the Commercial Tax Tribunal was legally justified in holding the sale of meat bone meal as exempted sales by the dealer in as much as the meat bone meal is liable to tax under Schedule -2 Part A at Serial No. 23 ? 5. Whether on the facts and circumstances of the case the Commercial Tax Tribunal was legally justified in ignoring the judgment passed by this Hon’ble Court in the case of CCT Vs. Mirha Export Pvt. Ltd. In C.T.R. No. 1042 of 2012 decided on 07.11.2012?” 4. Learned ACSC for the revisionist submits that opposite party dealer is carrying on the business of manufacture and sale of frozen meat exporting the commodity outside the country. He further submits that after slaughtering the animal bone and waste of meat, the same were processed in rendering plant and the goods manufactured is called poultry feed supplement, which has been declared exempted goods. He further submits that after rendering the meet, the animal fat, bone meal and bone sinews are obtained and these three commodities are taxable under the provisions of UP Value Added Tax Act @ 5 %, which are covered under Schedule -2 Part A at Serial No. 23. He submits that the respondents in the garb of poultry feed supplement has sold the bone meal meat. He submits that assessing authority while passing the assessment order has specifically recorded a finding of fact which has not been reversed by the Tribunal. 5. He submits that the assessing authority has relied upon the judgement of this court in the case of Commissioner Commercial Tax Vs. M/s Mirha Export Pvt. Ltd. (STTR No. 1042/2012) decided on 7.11.2012 but the Tribunal without reversing the finding recorded by the assessing authority only on the basis of orders passed by the Tribunal 3 STTR No. 154 of 2025 itself, has held that the goods sold by the respondents are poultry feed supplement. 6. He submits that this Court has specifically held that bone meal is liable to be taxed @ 5 % and prays for allowing the present revision. 7. Per contra, learned counsel for the respondent / opposite party supports the impugned order passed by the Tribunal and submitted that the Tribunal has rightly come to the conclusion that the goods in question fall under Schedule -1, Serial No. 4 and not covered Schedule - 2 Part A at Serial No. 23 as claimed by the revenue. He submits that the Tribunal after detailed discussion has rightly allowed the second appeal holding that goods sold by the respondent are poultry feed supplement. 8. After hearing learned counsel for the parties, the Court has perused the records. 9. The assessing authority while passing the assessment order has specifically recorded the finding of fact which is quoted hereunder:- "व्यापारी द्वारी पा ल्टी फीड / पा ल्ट्री फीड सप्लीमेन्टी के रुपा मे जो विक्री दर्शा#या गया है& है स्त मे बोन मेली ए, बोन सईन्या.जो के विबोक्री है& , जिजोस व्यापारी द्वारी मिमेस रिरीप्रजोन्टी केरीत है4ए मेटी केमे बोन मेली (एमे बो एमे) अथ पा ल्ट्री फीड सप्लीमेटी के नमे दिदया जो रीहै है& , जो केरी दयात स बोचन के असफीली प्रयास मेत्र है& , उपारीक्त समेस्त विचन के उपारी,त व्यापारी के बोन मेली के विबोक्री पारी केरी आरीविपात दिकेया जोयाग। एमे०बो०एमे० के सम्बोन्ध मे मेननया उच्च न्यायालीया इलीहैबोद द्वारी केमिमेश्नरी केमेमिर्शा#याली टी&क्स बोनमे स#श्री मिमेरीहै एक्सपाटी# प्र०मिलीए , रिरीजोन स,ख्या-1042/2012 मिनर्ण#या दिदन,के 07-11-2012 मे मिनर्णPत दिकेया गया है& , जिजोसके अ,र्शा मिनम्नत हैQ , " Whethe unde facts and circumstances of and cicums and circumstances oftances and circumstances of of , the cas and circumstances ofe the commecia ta tibuna was and circumstances of egay justified in a jus and circumstances oftified in a affiming the ode pas and circumstances ofs and circumstances ofed by justified in a the fis and circumstances oft appeate authoity justified in a detemining ," the ta and not as and circumstances of uncas and circumstances ofs and circumstances ofified item The tibuna has and circumstances of affimed the ode pas and circumstances ofs and circumstances ofed by justified in a the fis and circumstances oft appeate authoity justified in a and has and circumstances of come to the concus and circumstances ofion that the meaning pat of the done afte the taow / , etacted is and circumstances of us and circumstances ofed bone mea pouty justified in a feed which is and circumstances of iabe to be taed 5%. . . The tibuna has and circumstances of come to the ight concus and circumstances ofion The is and circumstances ofs and circumstances ofue is and circumstances of decided in favou of the as and circumstances ofs and circumstances ofes and circumstances ofs and circumstances ofee and agains and circumstances oft the depatment." मे० उच्च न्यायालीया द्वारी बोन मेली पारी 5 प्रमितर्शात के दरी स केरी दयात स्केरी 4 STTR No. 154 of 2025 के जो च4के है& , च.,दिके मे० इलीहैबोद उच्च न्यायालीया के मिनर्ण#या स,&धमिनके व्यास्थ के अ,तग#त केटी# ऑफी रिरीकेड# के श्रीर्ण मे आत है&. ऐस दर्शा मे याहै मिनर्ण#या उत्तरीप्रदर्शा के सभी अधनस्थ न्यायालीयाY के न्यामियाके प्रदिक्रीया मे अथ अध#-न्यामियाके प्रदिक्रीया पारी लीग. हैत है&। ऐस दर्शा मे मे० इलीहैबोद उच्च न्यायालीया के मिनर्ण#या सभी पारी बोध्याकेरी है&। प्रश्नगत द मे एमे०बो०एमे० क्या है& इस पारी भी विचरी दिकेया जोन के आश्याकेत है&। स्त4त\ पार्शा4ओं, के ध केरीन के उपारीन्त बोनलीस फ्रोजोन मेटी के उपारीन्त मेरी है4या पार्शा4ओं, के जो स्टीजो बोचत है& , जिजोसमे हैड्ड मेस केचरी हैत है&। (स,ग, खु4री बोली छोड़केरी ) उस री&जिcड,ग प्लीcटी मे डलीत हैQ, इसके बोद 275 के ०पा०ए० के उच्च तपा पारी 41 दिडग्री सजिल्सयास पारी 30 मिमेनटी तके हैटी केरीत हैQ तथ हैटी के उपारीन्त प्रसस के समेया टी&ली (एनमेली फी& टी) बोहैरी मिनकेलीत है& औरी सफी द मेटीमे&ली री,ग के पाडरी त&यारी हैत है&, जिजोस एमे०बो०एमे० केहैत हैQ, जो &टी अमिधमिनयामे के अन4स.च -1 मे केरीमे4क्त नहै, है&। . . . . C.S.I.R.O S.I.R.O I.R.O R.O O के रिरीपाटी# जो इcटीरीनटी पारी उपालीब्ध है& , के अन4सरी, " MBM is and circumstances of a . 50 % , 35% poduct of endeing indus and circumstances ofty justified in a I.R.O t is and circumstances of ty justified in apicay justified in a about potein , 8-12% 4-7% as and circumstances ofh fat and mois and circumstances oftue I.R.O t is and circumstances of pimaiy justified in a us and circumstances ofed in the fomuation of anima feed to impove the amino acid pofie of the . feed Feeding of MBM to catte is and circumstances of though to have been es and circumstances ofpons and circumstances ofibe ( ). fo the s and circumstances ofpead of BS.I.R.O " mad cow dis and circumstances ofeas and circumstances ofe I.R.O n mos and circumstances oft pats and circumstances of of the , . wod MBM is and circumstances of no onge aowed in feed fo uminant anima , , , Howeve in s and circumstances ofome aeas and circumstances of incuding the US.I.R.O MBM is and circumstances of s and circumstances ofti us and circumstances ofed to feed , - mono gas and circumstances oftic anima it in widey justified in a in the United S.I.R.O tates and circumstances of as and circumstances of a ow cos and circumstances oft . meat in dog food and cat food , I.R.O n "uope s and circumstances ofome MBM is and circumstances of us and circumstances ofed as and circumstances of ingedients and circumstances of in pet food but the - majoity justified in a in now us and circumstances ofed us and circumstances ofed as and circumstances of a fos and circumstances ofs and circumstances ofi fue epacement fo , , enewabe enegy justified in a geneation as and circumstances of a fue in cement kiins and circumstances of and fiing . of incineation Mea and bone mea as and circumstances of aound two thid of the , enegy justified in a vaue of fos and circumstances ofs and circumstances ofi fues and circumstances of s and circumstances ofuch as and circumstances of coa the UK in particular widely in paticua widey justified in a , us and circumstances ofes and circumstances of meat and bone mea fo the geneation of enewabe eecticity justified in a This and circumstances of was and circumstances of paticuay justified in a pominent afte many justified in a catte wee s and circumstances ofaughteed . duing the BS.I.R.O " cis and circumstances ofis and circumstances of Meat and bone mea is and circumstances of inceas and circumstances ofingy justified in a us and circumstances ofed in . cement kins and circumstances of as and circumstances of an envionmentay justified in a s and circumstances ofus and circumstances oftainabe epacement fo coa , Meat poduced in a batch dy justified in a endeing pant in which high -275 , 141 39 pes and circumstances ofs and circumstances ofue K in particular widelyPa gauge degee C.S.I.R.O es and circumstances ofius and circumstances of fo minutes and circumstances of was and circumstances of , , appied paticuay justified in a duing the as and circumstances oft s and circumstances oftages and circumstances of of endeing was and circumstances of found to , educe the eve of avaiabe amino acids and circumstances of if pigs and circumstances of wee us and circumstances ofed as and circumstances of the , , , tes and circumstances oft anima I.R.O n chicken feeding tias and circumstances of howeve change wee es and circumstances ofs and circumstances of 5 STTR No. 154 of 2025 - , impotant that is and circumstances of the chicks and circumstances of wee es and circumstances ofs and circumstances of s and circumstances ofens and circumstances ofitive to this and circumstances of fom of heat . damaged mea The es and circumstances ofuts and circumstances of of chicken feeding tias and circumstances of indicate thee is and circumstances of itte diffeence between the avaiabiity justified in a of amino acids and circumstances of in mes and circumstances ofis and circumstances of made fom S.I.R.O imia ( aw mateias and circumstances of which wee eithe continuous and circumstances ofy justified in a it endeed and died ) ( in a hot gas and circumstances of dy justified in ae at atmos and circumstances ofpheic pes and circumstances ofs and circumstances ofue of dy justified in a endeed without , pes and circumstances ofs and circumstances ofue teatment to noma end points and circumstances of tias and circumstances of demons and circumstances oftated that ). geate damages and circumstances of is and circumstances of caus and circumstances ofed by justified in a the dy justified in a endeing एमे बो०एमे० के प्रयाग भीरीत मे विपाग्स फीड , मिचकेन फीड, ड ग फीड के मिनमे#र्ण मे री मे&टीरिरीयाली के रूपा मे प्रयाग दिकेया जोत है&। विदर्शा# मे जोहैl पारी दिके उच्च तकेनके उपालीब्ध है& , हैl पारी मेटी ए,ड बोन मेली के उपायाग विद्यु4त n उत्पादन मे औरी समेcटी उद्युग मे पाया#रीर्ण के स4रीजिpत रीखुत है4या भीरी मेत्र मे दिकेया जो रीहै है&। उपारीक्त विचन स याहै स्पाष्ट है& दिके व्यापारी द्वारी विक्रीया दिकेया जो रीहै एमे०बो०एमे० जिजोस व्यापारी द्वारी पा ल्ट्री फीड सप्लीमेटी के नमे दिदया गया है&, है 5 प्रमितर्शात के दरी स केरीयाग्या स्त4 है& अत\ प्रश्नगत द मे उक्त के घोविsत प्रन्तया के न्द्रीया विबोक्री पारी मिनयामेन4सरी केरी दयात मिनध#रिरीत के जोयाग। " 10. The first appellate authority by the order dated 2.9.2024 had dismissed the appeal of the respondent against which the respondent has preferred second appeal before the Tribunal, which has been allowed by the impugned order without reversing the finding recorded by the assessing authority. The Tribunal in its order has held as under :- "उपारीक्त विमिचत तथ्याY ए, न्यामियाके मिनर्ण#याY के आधरी पारी केरी मिनध#रीर्ण अमिधकेरी द्वारी विबोन दिकेस उमिचत आधरी के अपालीकेत# के याहै केथन दिके उसके द्वारी मिनमिमे#त उत्पाद मेटी बोन मेली (पाल्ट्री फीड सप्लीमेन्टी) है&. के अस्केरी केरी मिनमिमे#त उत्पाद के बोन मेली अथ बोन सईन्या.जो घोविsत दिकेया जोन विमिध सम्मेत नहै, मेन जो सकेत है&। मेननया उच्च न्यायालीया, इलीहैबोद न केमिमेश्नरी सल्स टी&क्स बोनमे मेलीरीस विबोजिस्केटी केम्पान अलीगढ़ 2004- या.०पा०टी०स०-1001 मे याहै मिसद्धान्त प्रमितपादिदत दिकेया है& दिके :- " The s and circumstances ofetted pincipe of I.R.O ntepetation of S.I.R.O tatue is and circumstances of that the items and circumstances of in taing S.I.R.O tatute mus and circumstances oft be cons and circumstances oftucted in the s and circumstances ofence in which ae s and circumstances ofod by justified in a . the deae and puchas and circumstances ofed by justified in a the cons and circumstances ofume The opeation of a notification has and circumstances of to be judged not by justified in a the object which the ue making authoity justified in a had in mind but by justified in a the wods and circumstances of o epes and circumstances ofs and circumstances ofions and circumstances of which . it has and circumstances of empoy justified in aed to effectuate the egis and circumstances ofative intents and circumstances of The wods and circumstances of o 6 STTR No. 154 of 2025 , epes and circumstances ofs and circumstances ofions and circumstances of us and circumstances ofed in a notification mus and circumstances oft be cons and circumstances oftucted in the s and circumstances ofens and circumstances ofe in which they justified in a ae undes and circumstances oftood by justified in a the tades and circumstances of and by justified in a the cons and circumstances ofume . and not by justified in a what is and circumstances of undes and circumstances oftood by justified in a the depatment ” मेननया उच्च न्यायालीया इलीहैबोद द्वारी सल्स / ट्रीड टी&क्स रिरीजोन नम्बोरी- 1042/ 2012 केमिमेश्नरी जिर्णज्या केरी उ०प्र० बोनमे मे&० मिमेरीहै एक्सपाटी# प्र०मिली० मे पारिरीत आदर्शा दिदनlके 07-11-2012 के प्रश्नगत मेमेली मे लीग. हैन मेनत है4ए प्रथमे अपालीया अमिधकेरी द्वारी केरी मिनध#रीर्ण अमिधकेरी द्वारी विदिदत उत्पाद के बोन मेली अथ बोन सईन्या.जो घोविsत दिकेया जोन के सम्बोन्ध मे पारिरीत आदर्शा के समेथ#न दिकेया गया है&। अपालीकेत# के अन4सरी उपारीक्त द के तथ्या प्रस्त4त मेमेली स मिभीन्न हैन के केरीर्ण उपारीक्त विमिध व्यास्थ प्रस्त4त मेमेली मे लीग. नहै, हैत है& जोबोदिके विभीग के ओंरी स उपाजिस्थत विद्वान रीज्या प्रमितमिनमिध द्वारी उपारीक्त द मे मेननया उच्च न्यायालीया द्वारी पारिरीत आदर्शा के प्रस्त4त मेमेली पारी लीग. हैन के केथन दिकेया गया है&। उक्त विबोन्द4 पारी जिर्णज्या केरी अमिधकेरीर्ण गजिजोयाबोद के खुcडपाठ द्वारी उपारीक्त दY मे दिदया गया मिनर्ण#याY के तथ्या अपालीकेत# के दY मे मिनदिहैत तथ्याY स पा.र्ण#त\ मेली खुत हैQ। उक्त मिनर्ण#याY मे अमिधकेरीर्ण द्वारी अपालीकेत# के दY के तथ्या तथ मेननया उच्च न्यायालीया इलीहैबोद द्वारी मे& . मिमेरीहै एक्सपाटी# प्र०मिली० मे दिदया गया मिनर्ण#या के तथ्याY के मिभीन्न मेनत है4ए व्यापारिरीयाY द्वारी मिनमिमे#त विदिदत स्त4 के बोन मेली न मेनत है4ए मेटी बोन मेली (पाल्ट्री फीड सप्लीमेन्टी) मेनत है4ए केरीमे4क्त घोविsत दिकेया गया है&। इस प्रकेरी अपालीकेत# के प्रन्तया / के न्द्रीया द मे समेन तथ्या हैन के केरीर्ण अपालीकेत# द्वारी मिनमिमे#त बोस्त4 के मेटी बोन मेली (पाल्ट्री फीड सप्लीमेन्टी) मेनत है4ए अपालीकेत# के प्रन्तया /के न्द्रीया दY मे उक्त स्त4 के केरीमे4क्त घोविsत दिकेया जोन न्यायामिचत है&। अत\अपालीकेत# द्वारी प्रन्तया ए, के न्द्रीया द मे मेटी बोन मेली (पाल्ट्री फीड सप्लीमेन्टी) के घोविsत विबोक्री के केरीमे4क्त स्त4 के विबोक्री मेनत है4ए उस पारी अरी अमिधकेरिरीयाY द्वारी आरीविपात केरी क्रीमेर्शा\ रू0 53,72,350.00 ए, रू0 15,67,750.00 समेप्त दिकेया जोन याग्या है&।" 11. While passing the order, the Tribunal has mentioned the judgement passed by this Court but how the judgement passed by this Court is distinguishable has not recorded in its finding. On the contrary, the Tribunal after relying upon the judgments passed by the Tribunal itself has passed the impugned order. Further the finding recorded by the assessing authority with regard to obtaining bone meal has not been reversed. 7 STTR No. 154 of 2025 12. In view of above, the impugned order cannot be sustained in the eyes of law and same is hereby quashed. 13. The revision is allowed. 14. The substantial questions of law are answered in favour of the revisionist/revenue and against the opposite party. (Piyush Agrawal, J.) September 19 , 2025 Rahul Dwivedi/- Digitally signed by :- RAHUL DWIVEDI High Court of Judicature at Allahabad