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TMI Blog2011 (1) TMI 1286X X X X Extracts X X X X X X X X Extracts X X X X ..... is a manufacturer of pesticides/insecticides. The order issued by the Commissioner of Commercial Taxes conferring jurisdiction on the Deputy Commissioner of Commercial Taxes (Enforcement) 1, South Zone for passing of assessment/reassessment order in the case of the petitioner under section 39(1) of the VATAct for the tax period from August 2008 to March 2009 and April 2009 to January 2010, is opposed to the principles of natural justice since already the authority has determined that the petitioner is liable to pay tax at higher rate of 12.5 per cent on sale of household insecticides, pesticides and rodenticides. Heard the counsel representing the parties. It is the petitioner's case, by the amendment brought to entry 23 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he imposition of tax stating that it is used for a different purpose. After the amendment, entry 23 of the Third Schedule of the Act reads as under: "Chemical fertilizers, chemical fertilizer mixtures; bio-fertilizers, micro nutrients, gypsum, plant growth promoters and regulators; rodenticides, fungicides, weedicides and herbicides; insecticides or pesticides but excluding phenyl, liquid toilet cleaners, floor cleaners, mosquito coils, mosquito repellants and the like used for non-agricultural or non- horticultural purposes." The petitioner's counsel, relying upon the Division Bench judgment of this court in Ashok Agencies v. State of Karnataka [2008] 16 VST 570 (Karn); [2008] 65 KLJ 97 (Karn), contended that all kinds of insecticid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of trade parlance. This is an accepted form of construction. It is a well known principle that if the definition of a particular expression is not given, it must be understood in its popular or common sense, viz., in the sense how that expression is used everyday by those who use or deal with those goods. . ." It is argued that, classification on the basis of trade parlance is a reasonable classification for the purpose of imposition of tax and, the judgment of this court in Ashok Agencies case [2008] 16 VST 570 (Karn); [2008] 65 KLJ 97 (Karn) is without reference to the ratio laid down by the apex court in United Offset Process Pvt. Ltd.'s case [1989] 74 STC 81 (SC); AIR 1989 SC 622. The Government Pleader has also relied upon another ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner even if it is treated as an interpretation, then necessarily, the order that would be passed by the appellate authority would not be other than in terms of the clarification issued by the Commissioner of Commercial Taxes. Even assuming that the Joint Commissioner would not act other than the way in which instructions were issued by the Commissioner of Commercial Taxes, and it has to be treated as good an order passed by the Commissioner himself in the matter of assessment/reassessment, however, still a reading of the amendment to entry 23 would need interpretation in the background whether, straightaway it falls within the meaning of insecticides only to attract four per cent tax and there could not have been any distinction be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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