TMI Blog1973 (9) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... k the view that though the manure mixtures in question will fall within item 21 of the First Schedule, the sales by the assessee of the manure mixtures are second sales of chemical fertilisers and hence could not be taxed. Aggrieved against the decision of the Tribunal the revenue is before us. It is contended by the learned Government Pleader that the view taken by the Tribunal that the manure mixture having as its components any one or more of sub-items (1) to (15), which are chemical fertilisers, is also a chemical fertiliser which has already suffered tax is erroneous, that the manure mixture sold by the assessee is different from each of the items of chemical fertilisers referred to in sub-items (1) to (15), that the manure mixture sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the manure mixture sold it is not possible to treat the sales of the manure mixtures as second sales. Though that decision was rendered in respect of a manure mixture having as its components both organic and inorganic substances, the principle of that decision has to be applied to the facts of this case. The ratio of that decision is that if the mixture sold had different chemical properties and treated as a different commodity in commerce, its sale cannot be taken to be a second sale of chemical fertilisers, merely because the components have suffered tax at an earlier stage as chemical fertilisers. Learned counsel for the assessee, however, points out that the said decision should be confined to the facts of that case where there w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssion "chemical fertilisers" occurring in the opening part of that item is wide in its scope so as to attract any chemical fertilisers and the words following it "that is to say" cannot be understood as words of limitation. In this view the manure mixture sold by the assessee has to be taken to be a chemical fertiliser. Besides, the manure mixture prepared from one or other of the articles mentioned in items (1) to (15) is treated as a chemical fertiliser in commercial circles and the mere fact that the mixture does not fall within the named articles (1) to (15), it cannot cease to be a chemical fertiliser. The learned counsel for the assessee placed reliance on the unreported decision of this court in Mysore Fertiliser Company v. State of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure has not been prepared as a result of any manufacturing process and, therefore, it should be taken to have the same properties as its components. The question here is not whether the process adopted by the assessee is one of manufacture or not. Whether the process adopted is manufacture or otherwise, if the resultant product obtained by mixing the various articles of chemical fertilisers referred to in item 21 is sold as a different commercial product and for a different user, it has to be treated as a different article from the component. In our view, the view taken by the Tribunal in relation to the disputed turnover cannot be upheld. The tax case is, therefore, allowed and the Tribunal's order is partly set aside. The revenue will hav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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