J. S. VERMA, C. J. - (1.) THIS revision by the department is against the Board of Revenue's order dated February 1, 1979 in a revision against the order of the Deputy Commissioner, Commercial Taxes (Appeals), Jaipur dated January 29, 1974. Relevant period of assessment is October 30, 1970 to October 18, 1971. The question for decision is whether cheese being a product of milk or curd is exempt from payment of sales tax by virtue of entry at Sl. No. 8 in the Schedule to the Rajasthan Sales Tax Act, 1954 (hereinafter referred to as "the Act") as it existed at the relevant time. The Board of Revenue has accepted the assessee's contention that cheese is so exempt. Hence this revision by the department.
(2.) THE contention of the learned counsel for the department is that cheese is not covered by the exemption granted by the entry at Sl. No. 3 in the Schedule to the Act and it is taxable under the residuary entry at Sl. No. 79 in the Notification No. F. 5 (16)FD (CT)/69-2 dated March 8, 1969. Learned counsel refers to the change effected by substitution of the exemption entry at Sl. No. 3 in the Schedule to the Act with effect from March 6, 1964 in support of his contention. He argued that up to March 6, 1964 all milk products were also exempt but omission of the words "milk products" in the substituted entry with effect from March 6, 1964 withdrew the exemption granted till then also to the milk products. In my opinion, this contention cannot be accepted. The relevant entries may now be quoted. The exemption entry at Sl. No. 3 in the Schedule to the Act till March 6, 1964 was as under : " Fresh milk, whole or separated and milk products including ghee, and butter. " This entry with effect from March 6, 1964 was substituted as under : " Fresh milk (whether whole or the fat contents of which have been removed or reduced), dahi, khoa and cream. " A comparison of the above entries and omission of the words "milk products" with effect from March 6, 1964, from it is the foundation of the argument of the learned counsel for the petitioner. It is clear that this exemption entry has to be construed in the light of the entries contained in the above notification dated March 8, 1969 prescribing the rate of tax payable in respect of the goods specified therein. Admittedly, there is no specific entry for cheese therein while there is a specific entry at Sl. No. 11 relating to "ghee and butter" which is to be taxed at the specified rate. It is on account of the absence of any specific entry including cheese within its ambit the learned counsel for the petitioner invoked the residuary entry at Sl. No. 79 of this notification for taxing cheese. Admittedly, ghee and butter are products of milk or curd which continues to be exempt even under the exemption entry substituted with effect from March 6, 1964. Moreover, ghee and butter are not the only products of milk or curd and other such products, viz. , cheese are not specifically provided for in the notification dated March 8, 1969 even though ghee and butter are so provided for the purpose of payment of tax. It is, therefore, not a case where products of milk or curd are nowhere provided in the notification dated March 8, 1969 but a case where two such products, namely, ghee and butter are specifically mentioned for the purpose of payment of tax while the others, viz. , cheese are not so mentioned. It is in this background that the exemption entry as substituted with effect from March 6, 1964 has to be construed. The exemption entry up to March 6, 1964 left no doubt that all milk products were exempt from payment of tax including ghee and butter, as specifically mentioned therein. Thereafter, that entry was substituted with effect from March 6, 1964 by mentioning therein specifically milk, dahi (curd), khoa and cream and the words "milk products" do not find a place therein. The question is whether this alone is sufficient to hold that the exemption granted to milk products other than ghee and butter which have been shown specifically as exigible to tax in the notification dated March 8, 1969, ceased to be so exempt from the payment of tax. In my opinion, it is not so. The notification dated March 8, 1969, providing specifically for ghee and butter while leaving out other milk products was issued much after the substituted exemption entry at Sl. No. 3 with effect from March 6, 1964. If the substituted entry were to be read as excluding the products of the goods mentioned therein, then it was not necessary to provide expressly for the taxation of ghee and butter which are two of its products in the notification dated March 8, 1969. This being so, the ordinary rule of construction that products of exempted goods would also be exempt unless a contrary intention appears must be applied. No contrary intention to tax the products of milk or curd other than ghee and butter appears from the aforesaid notification dated March 8, 1969. This being so, cheese, which is admittedly the product of milk or curd, must be held to be exempt from payment of tax by virtue of this entry. Reference may be made to the decision of the Supreme Court in Alladi Venkateswarlu v. Government of Andhra Pradesh [1978] 41 STC 394, wherein it was held that the term "rice" is wide enough to include rice in its various forms whether edible or inedible. On this basis it was held that the term "rice" as ordinarily understood, would include both parched and puffed rice. The view taken, therefore, finds support from this Supreme Court decision. Consequently, the revision is dismissed. No costs. Petition dismissed. .;