Corn Flour is taxable at 5%
It is well established that if a statute contains both a general provision as well as specific provision, the latter must prevail. The principle finds its origins in the Latin maxim of generalia specialibus non derogant, that is, general law yields to special law should they operate in the same field on same subject. From the manufacturing process of Corn Flour given by the applicant as well as information given on packaging of goods in question it is clear that Corn Flour dealt in by the applicant is nothing but maize starch. 4 In view of the foregoing discussion, sale of ‘Corn Flour’ made by grinding maize is held taxable at the rate of 5 % under section 16(2)(b)(ii), read with entry at serial No. 46A of Part I of Schedule C, of the VAT Act.
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