TMI Blog1978 (12) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... ucts are meant not only for human beings but also for cattle and poultry. With a view to supplementing the deficiency of vitamins in the normal diet given to cattle and poultry, the assessee manufactures and markets different products. We are concerned herein with four of such products. They are: (1) Vitablend AD 3, (2) Vitablend AD 3 Forte, (3) Vitablend AB 2 D 3, and (4) Vitablend WM Forte. The products at serial Nos. (1) and (2) are meant for cattle and the products at serial Nos. (3) and (4) are meant for poultry. The assessee was desirous of ascertaining whether the sales of the above-mentioned products were exigible to tax under the Act. An application was, therefore, made by the assessee under section 62 of the Act to the Commissioner of Sales Tax for the determination of the question whether on the sales of those products it was liable to pay any tax and, if so, the rate of tax. The application was heard by the Deputy Commissioner of Sales Tax. The contention of the assessee before the said authority was that the products at serial Nos. (1) and (2) were cattle-feed within the meaning of entry 21 of Schedule I and that the products at serial Nos. (3) and (4) were poultry-fee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... included would arise. However, the subsequent question, though it is decided by the Tribunal, has not been specifically referred to this Court and we are, therefore, not immediately and directly concerned with the same. To be covered by entry 21, the products in question, in the first place, must be cattle-feed. Cattle-feed, which is mechanically produced is, however, specifically excluded from the coverage of the said entry by the words of exclusion contained in the bracketed portion. The other important aspect, which requires to be borne in mind, is that whereas fodder and concentrates are specifically included, cotton-seeds, oilcakes and deoiled cakes are in terms excluded. On an integral reading of the said entry, it would appear, therefore, that cattle-feed, including fodder and concentrates, which is not mechanically produced, but excluding cottonseeds, oilcakes and de-oiled cakes, is covered by the entry. The legislative intention, which is made manifest accordingly, is that (i) mechanically produced cattle-feed and (ii) cotton-seeds, oilcakes and de-oiled cakes are not to be exempted from the levy of tax. Entry 25 is simpler when compared with entry 21. Anything which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of Animals", deals with the feeding stuffs of animals. It is there pointed out that food is essential for the maintenance of life. The nutrients in a feeding stuff enable the animal body to maintain energy, to perform the vital processes of life and provide the material to replace the essential tissues breakdown which occurs in the body continuously. Food also provides the constituents and the energy required for body growth. All feeding stuffs are composed of water, and organic and mineral matter. Organic matter is composed of proteins, fats, crude fibre and soluble carbohydrates. Besides the above, there are certain substances known as vitamins, which are considered to be essential for the proper nutrition of farm stock. Of these, the more important ones, from the point of view of cattle nutrition, are vitamins A and D, because these have to be supplied to the animals through their feed; but vitamins B and C can be synthesized in the ruminant body. The learned author proceeds to point out that the ration of an animal may be divided for convenience into two parts, one for maintenance ration is that portion of the diet which just enables the animal at rest to carry on the esse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lied by the carbohydrates and fat; essential minerals; and vitamins. Plenty of water and air are also needed. Dealing in detail with the role of vitamins in animal feed, the learned authors have pointed out that the numerous scientific discoveries concerning vitamins had a profound effect upon live-stock farming by increasing the efficiency of animal production and preventing serious nutritional diseases. Vitamin A, which is required for growth, reproduction, milk production and even for the maintenance of mature animals, is most apt to be lacking in live-stock feeds. A serious deficiency of this vitamin makes animals especially subject to diseases of the respiratory tract and they often die of pneumonia. Next to vitamin A, attention is given to vitamin D in live-stock feeding. This vitamin is needed to enable animals to assimilate and use the minerals, calcium and phosphorus. A deficiency of this vitamin causes serious bone diseases such as rickets in young growing animals. Because poultry have especially high vitamin D requirements, special vitamin D supplements are included in their rations, particularly under winter conditions, or when they are confined away from the direct sun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds for poultry, swine and young calves. This study of animal feed composition and feed supplements brings into clear limelight the fact that in the manufacture of commercially mixed feeds, several feed additives are used and that amongst them are included vitamins A and D. These two vitamins are added as supplements in mixed feeds for cattle, poultry, swine and young calves. At this stage, it would be convenient to deal with poultry-feed as well. The word "poultry" has many meanings. The one which is relevant for us is to be found at item No. 3 under the heading "poultry" at page 1199 of the Oxford English Dictionary, Volume VII. Accordingly, "poultry" means "domestic fowls collectively; those tame birds which are commonly reared for their flesh, eggs or feathers, and kept in a yard or similar enclosure, as barn-door fowls, ducks, geese, turkeys, guinea-fowls (excluding pigeons, pheasants, etc.); sometimes restricted to the barn-door fowl with its varieties; also applied to the birds as dressed for the market or prepared for food". In Webster's New Twentieth Century Dictionary (Unabridged), the following meaning is given to the word "poultry" at page 1411: "Domestic fowls which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fattening and for production purposes, such as for reproduction, for production of milk, eggs, meat, wool or feathers and, in the case of animals, also for efficient output of work. In modern times, "cattle-feed" and "poultry-feed" include a large variety of concentrates, in addition to roughages, that have a high value because they are rich in easily digested nutrients and feed supplement. Amongst the feeds which are considered essential for the proper nutrition of animals and birds, which are to be kept in a state of efficient production, are included vitamins and, more particularly, vitamins A and D, which have been found to have a profound effect upon live-stock farming by increasing the efficiency of animal production and preventing serious nutritional diseases. Vitamin A, which is required for growth, reproduction, production and even for maintenance and vitamin D, which is needed to enable the animal to assimilate and use other important elements of its feed, are most apt to be lacking in natural live-stock feeds and that they are included as additives in mixed feeds so as to make good the deficiency. Whichever way one looks at the matter, therefore, whether one looks at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... poultry, as the case may be, and that the products can also be given in the same form without being mixed with any other feed. It also appears to have been stated that the products do not constitute food in the conventional sense of ration for maintenance and that they constitute ration for production in the sense that they supply nutrients for nourishing the body. The Tribunal, upon taking these submissions into account and relying upon its earlier decision in the case of Hoechst Pharmaceutical Limited (Appeal No. 21 of 1972 decided on 9th February, 1973), held that the products cannot be classified as cattle-feed or poultry-feed, as the case may be. It requires to be noted at this stage that the Deputy Commissioner of Sales Tax has observed that on studying the literature in respect of all the four items, it clearly appeared that the products in question were not such as could be given to cattle or poultry without any addition. In terms, the Deputy Commissioner of Sales Tax found that the products in question have to be added to the feed given to the animals or birds and that, therefore, those products are not "original food but they are supplements". We have ourselves also look ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in Ramavatar Budhaiprasad v. Assistant Sales Tax Officer, Akola[1961] 12 S.T.C. 286 (S.C.)., and Commissioner of Sales Tax, Madhya Pradesh v. Jaswant Singh Charan Singh[1967] 19 S.T.C. 469 (S.C.). In both these decisions, the Supreme Court had applied what has come to be known as "the meaning according to common parlance" principle. That principle, which is borrowed from the decision in His Majesty the King v. Planters Nut and Chocolate Company Limited1951 C.L.R. (Ex.) 122., is to the effect that for the purposes of statutes intended to raise revenue, the substance concerned must be classified "according to the general usage and known denominations of trade". The Supreme Court observed that the principle deducible was that goods which were the subject-matter of taxation "must be construed not in any technical sense nor from the botanical point of view but as understood in common parlance". It was in terms observed as under: "It (the word) has not been defined in the Act and being a word of everyday use it must be construed in its popular sense meaning that sense which people conversant with the subject-matter with which the statute is dealing would attribute to it." (bracke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wered in favour of the assessee. We find, however, that that course cannot be adopted so far as the first question is concerned. We have pointed out earlier that cattle-feed, which is mechanically produced, is specifically excluded from the coverage of entry 21 of Schedule I. The essential question, which will require to be determined in each case concerning the said entry, therefore, is whether the goods in question, even if they be cattle-feed, are mechanically produced. We find, in the instant case, that the Tribunal has not at all applied its mind to this aspect of the case presumably because it was of the view that the products in question are not "cattle-feed". In the view which we have taken, however, the determination of the subsidiary question is not only relevant but also necessary. Under these circumstances, we would have ordinarily declined to answer the first question and left it to the Tribunal to adjust its decision under section 69(4), after having considered the aforesaid aspect. That exercise, however, is not necessary in the present case because, on behalf of the assessee, it has been specifically stated to us that the products at serial Nos. (1) and (2) are me ..... X X X X Extracts X X X X X X X X Extracts X X X X
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