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Deputy Commissioner of Commercial Taxes Vs. K. Sowrirajan - Court Judgment

LegalCrystal Citation
SubjectSales Tax
CourtChennai High Court
Decided On
Case NumberTax Case No. 171 of 1973 (Revision No. 148 of 1973)
Judge
Reported in[1977]40STC359(Mad)
AppellantDeputy Commissioner of Commercial Taxes
RespondentK. Sowrirajan
Appellant AdvocateAdditional Government Pleader
Respondent AdvocateC. Natarajan, Adv.
DispositionPetition allowed
Cases ReferredState of Tamil Nadu v. Pyare Lal Malhotra
Excerpt:
- .....n. p. k. complex fertiliser in the present case can come within the scope of item (16) of the said entry. item (16) states:any mixture of one or more of the articles mentioned in items (1) to (15) and one or more of the organic manures.5. the appellate assistant commissioner has held in this case that the n. p. k. complex fertilisers do not contain any organic manure. it is not the case of the respondent even before us that the n. p. k. complex fertilisers contain any organic manure. consequently, the n. p. k. complex fertilisers cannot come within the scope of item (16), because for a mixture to come within the scope of that item, it must be a mixture of one or more of the items enumerated in items (1) to (15) and one or more of the organic manures and so long as a mixture does not.....
Judgment:

Ismail, J.

1. This is a petition preferred by the State under Section 38 of the Tamil Nadu General Sales Tax Act, 1959, hereinafter referred to as the Act, against the order of the Sales Tax Appellate Tribunal (Additional Bench), Madurai, dated 9th April, 1973.

2. The controversy is very narrow in scope. The assessment year is 1969-70. The respondent is a dealer in what is called N. P. K. complex fertilisers. The question for consideration was, whether the said fertilisers fell within the scope of entry 21 of the First Schedule of the Act, so as to attract a single point levy till the amendment of the entry from 6th August, 1970, or not. The said entry, as it stood before its amendment on 6th August, 1970, was as follows :

21. Chemical fertilisers, that is to say,-(1) ammonium sulphate, (2) ammonium nitrate, (3) urea, (4) ammonium chloride, (5) sodium nitrate, (6) calcium ammonium nitrate, (7) super-phosphate single, (8) super-phosphate triple, (9) kotka phosphate, (10) di-calcium phosphate, (11) potassium chloride (muriate of potash), (12) sulphate of potash, (13) mono-ammonium phosphate, (14) di-ammonium phosphate, (15) bone-meal, (16) any mixture of one or more of the articles mentioned in items (1) to (15) and one or more of the organic manures.

3. The Tribunal took the view that the various items enumerated therein were only illustrative and that, consequently, any chemical fertiliser will be eligible for a single point levy under the said entry 21. The decision of the Supreme Court in State of Tamil Nadu v. Pyare Lal Malhotra [1976] 37 S.T.C. 319 makes it clear that the view of the Tribunal is erroneous, because, according to that decision, the phrase 'that is to say' occurring after the words 'chemical fertilisers' is not illustrative but exhaustive.

4. The only other question is, whether the N. P. K. complex fertiliser in the present case can come within the scope of item (16) of the said entry. Item (16) states:

any mixture of one or more of the articles mentioned in items (1) to (15) and one or more of the organic manures.

5. The Appellate Assistant Commissioner has held in this case that the N. P. K. complex fertilisers do not contain any organic manure. It is not the case of the respondent even before us that the N. P. K. complex fertilisers contain any organic manure. Consequently, the N. P. K. complex fertilisers cannot come within the scope of item (16), because for a mixture to come within the scope of that item, it must be a mixture of one or more of the items enumerated in items (1) to (15) and one or more of the organic manures and so long as a mixture does not contain any organic manure, it cannot come within the scope of item (16). The use of the expression 'any mixture of one or more of the articles in items (1) to (15)' is significant. If the intention of the legislature had been that any mixture consisting of two or more of the articles mentioned in items (1) to (15) should be brought within the scope of item (16), then the said item should have been couched in a different language, such as 'any mixture of two or more of the articles mentioned in items (1) to (15)' because there cannot be a mixture of less than two articles. Since similar expression has been used in respect of organic manures and both the expressions are joined together by the word 'and', it is indisputable that for a mixture to fall under item (16), it must be a mixture of at least one or more of the articles mentioned in items (1) to (15) and at least one organic manure. The amendment of this entry by Tamil Nadu Act 26 of 1970, namely, the Tamil Nadu General Sales Tax (Third Amendment) Act, 1970, with effect from 6th August, 1970, reinforces this conclusion of ours. In fact, the item corresponding to item (16) of entry 21 of the Act is item (22) of entry 21 of the amended Act and the same reads as follows :

Any mixture of two or more of the articles mentioned in items (1) to (21) above with or without the addition of other articles (on the turnover relating to components thereof which have not already suffered tax).

6. Thus, it will be clear that only under the amendment, there can be a mixture of articles enumerated in that entry without any organic manure or any other article. As we have pointed out already, the N. P. K. complex fertilisers do not contain any organic manure at all and, therefore, they cannot fall within the scope of item (16) of entry 21.

7. The result is the conclusion of the Tribunal is erroneous in law. Consequently, the tax revision petition is allowed and the order of the Tribunal so far as the turnover referable to N. P. K. complex fertilisers till 5th August, 1970, is concerned is set aside and that of the Appellate Assistant Commissioner is restored. There will be no order as to costs.


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