TMI Blog2004 (6) TMI 608X X X X Extracts X X X X X X X X Extracts X X X X ..... in subjecting the second and subsequent sales of gramaxone, vitto-plant, zimag, etc., to turnover tax under section 6-B of the Karnataka Sales Tax Act, 1957 even though Notification No. FD 32 CSL 81 dated June 29, 1981 has exempted second and subsequent sales of insecticides and pesticides from payment of turnover tax? " 4.. To answer the aforesaid questions, the brief facts as narrated by the petitioner in the memorandum of revision petitions require to be noticed. They are as under: The petitioner claims that he is a dealer in insecticides and pesticides, and registered under the provisions of the Karnataka Sales Tax Act, 1957 (hereinafter for the sake of brevity referred to as "KST Act, 1957"). For the assessment years in question, the petitioner had effected second sales of chemical compounds known as gramoxone, fermoxone, vitto-plant, zimag, etc. The petitioner had claimed exemption from payment of turnover tax on the turnover of the aforesaid chemical compounds in view of the Government Notification dated June 29, 1981, on the assumption that those chemical compounds would fall within the meaning of the expression "insecticides and pesticides". The assessing authority wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 4 of 1992. We may observe that the Legislature has chosen to include fungicides, herbicides, etc., in entry No. 117 of the Second Schedule in 1992, since those chemical compounds are different from insecticides and pesticides. 8.. Let us first examine whether the Tribunal is justified in rejecting the appeals filed by the petitioner by referring to entry No. 117 to the Second Schedule to the Karnataka Sales Tax Act, 1957. This issue, in our opinion, need not detain us for long in view of the decision of the division Bench of this Court in the case of B.H. Vasudeva Pai Sons v. State of Karnataka (S.T.A. No. 1 of 1987 and connected matters disposed of on January 1, 1996) [2006] 146 STC 241 [App]. That was a case where the dealers claimed exemption from payment of turnover tax in respect of copper sulphate for different assessment years relying upon the Government Notification dated June 29, 1981. The authorities had rejected the claim made by the dealers. The correctness or otherwise of the said orders was questioned by the dealers in the appeals filed before this Court. The primary contention of the learned counsel for the appellant in that case was that the copper sulphate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arately. Therefore that treatment cannot be applied to the said expression when it occurs elsewhere. When the authority granting exemption itself understood that the copper sulphate is included in the expression 'insecticide/pesticide', the only question to be considered by the authorities is whether copper sulphate is insecticide/pesticide. That question has been considered by the appellate authority in these cases by reference to a statute, viz., Insecticides Act, 1969 and Insecticides Rules, 1971, and that certainly forms an excellent piece of evidence to indicate whether copper sulphate is insecticide/pesticide. When the Legislature itself recognises such a fact, it is certainly proper for the authorities to rely upon the same." 9.. We also fully endorse the view expressed by a division Bench of this Court in B.H. Vasudeva Pai Sons v. State of Karnataka (S.T.A. No. 1 of 1987 decided on January 1, 1996) [2006] 146 STC 241 [App]. In view of this settled legal position in law, the second reason assigned by the Tribunal for rejecting the assessee's appeal cannot be accepted. 10.. The other reason assigned by the Tribunal and the authorities under the Act to deny the exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able under section 6-B of the Act by registered dealer on the second and subsequent sales of chemical compounds, namely, herbicides, fungicides and weedicides, etc. According to the learned counsel, herbicides, weedicides and fungicides are "pesticides" and therefore, the petitioner is entitled to the benefit of Government notification dated June 29, 1981. 13.. Sri Anand, learned Government Advocate would contend that the object and purpose of the notification is to grant exemption only to the category of goods notified under the notification and therefore, what is exempted from payment of turnover tax under the notification is the second and subsequent sales of insecticides and pesticides by a registered dealer and it is further contended that fungicides, weedicides and herbicides would not come within the meaning of expression either insecticides or pesticides. 14.. The meaning of expression "insecticides or pesticides" is not defined under the Act. Therefore, it is permissible to refer to the dictionary meaning of the expression "insecticides and pesticides". In the World Book Encyclopedia Volume 10, the meaning of the expression "insecticide" is defined as under: "Insecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we have already noticed, have rejected the claim of the petitioner and the said order has been affirmed by the Tribunal also, only on the ground that the sales of chemical compound effected by the petitioner are of fungicides, herbicides, weedicides, etc. 18.. In our opinion, pesticides is a general term which means, a chemical used to destroy the pests. The individual names like herbicides, fungicides, weedicides, etc., are given as they are intended to destroy the specific pest or organism, which causes such pests. Therefore, it can safely be said that fungicides, herbicides and weedicides are not different from pesticides. Even in the Manual for Pesticides published by the Pesticides Association of India, while explaining the meaning of expression "pesticides ", has included insecticides, fungicides, herbicides and rodenticides. In view of the dictionary meaning of the word "pesticides " and the law declared b the apex Court in the case of Bombay Chemical Private Limited v. Collector of Central Excise, Bombay [1995] 99 STC 339 and also the meaning of the expression "pesticides" explained in the Manual for Pesticides published by the Pesticides Association of India, we have n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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