1978 (12) TMI 164 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Whether Vitablend AD 3 and Vitablend AD 3 Forte are covered by entry 21 of Schedule I to the Gujarat Sales Tax Act, 1969.
2. Whether Vitablend AB 2 D 3 and Vitablend WM Forte are covered by entry 25 of Schedule I to the Gujarat Sales Tax Act, 1969.

Detailed Analysis:

Issue 1: Coverage of Vitablend AD 3 and Vitablend AD 3 Forte under Entry 21 of Schedule I

The primary question is whether Vitablend AD 3 and Vitablend AD 3 Forte qualify as "cattle-feed" under entry 21 of Schedule I of the Gujarat Sales Tax Act, 1969. Entry 21 specifies "Cattle-feed (other than mechanically produced cattle-feed) including fodder and concentrates but excluding cotton-seeds, oilcakes and de-oiled cakes."

To qualify under entry 21, the products must be cattle-feed and not mechanically produced. The Tribunal and the Deputy Commissioner of Sales Tax determined that the products did not fall under entry 21, considering them as supplements rather than primary feed. The Tribunal relied on its earlier decision in Hoechst Pharmaceutical Limited, where it was held that products serving as supplements to normal feed could not be classified as cattle-feed.

The court analyzed the meaning of "cattle-feed" and "feed" in general, referencing various authoritative texts. It concluded that "cattle-feed" includes not only basic maintenance feed but also supplements necessary for production, such as vitamins A and D. However, the products in question are mechanically produced, which excludes them from entry 21 by legislative intent.

Therefore, the court held that Vitablend AD 3 and Vitablend AD 3 Forte are not covered by entry 21 of Schedule I, primarily because they are mechanically produced.

Issue 2: Coverage of Vitablend AB 2 D 3 and Vitablend WM Forte under Entry 25 of Schedule I

Entry 25 of Schedule I simply states "Poultry-feed" without any qualifications. The court examined whether Vitablend AB 2 D 3 and Vitablend WM Forte qualify as poultry-feed. According to the literature, Vitablend AB 2 D 3 consists of vitamins A, B2, and D3, and Vitablend WM Forte is a liquid feed supplement of vitamin A. These products are used to enhance the nutrition, growth, and production of poultry.

The court emphasized that "poultry-feed" includes feed necessary for both maintenance and production purposes, such as growth, egg production, and overall health. It noted that modern poultry-feed includes various supplements and additives like vitamins, which are essential for efficient production and preventing nutritional diseases.

The court concluded that Vitablend AB 2 D 3 and Vitablend WM Forte meet the criteria for poultry-feed as they provide necessary nutrients for the growth and production of poultry. Consequently, these products are covered by entry 25 of Schedule I.

Conclusion:

- Question 1: The products Vitablend AD 3 and Vitablend AD 3 Forte are not covered by entry 21 of Schedule I, as they are mechanically produced. The answer is in the negative, against the assessee and in favor of the revenue.
- Question 2: The products Vitablend AB 2 D 3 and Vitablend WM Forte are covered by entry 25 of Schedule I. The answer is in the affirmative, in favor of the assessee and against the revenue.

Reference Answered Accordingly.