1991 (8) TMI 312 - HC - VAT and Sales Tax

Summary

Issues Involved:
The appeal involves the interpretation of entry 66 of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959, specifically regarding the classification of the commodity "Gramoxone" as either falling under "weedicides and fungicides" or "pesticides and insecticides."

Details of the Judgment:

Issue 1: Classification of "Gramoxone" under Entry 66 of the First Schedule
The assessee, a dealer at Ooty, reported turnovers for the assessment year 1975-76, including a claim for exemption on second sales of "Gramoxone." The assessing authority disallowed the exemption and estimated the turnover, leading to an appeal. The Appellate Assistant Commissioner held that "Gramoxone" fell under entry 66 of the First Schedule and was not liable for tax. However, the Joint Commissioner, after considering objections, held that "Gramoxone" was not covered by entry 66 and was liable for multi-point tax. The appellant argued that the amendment to entry 66 in 1977 included "fungicides," encompassing "Gramoxone." The Court analyzed the historical context of entry 66 and concluded that the amendment was not clarificatory but declaratory, extending single-point tax benefits to "fungicides" only from September 13, 1977. Therefore, prior to this date, "Gramoxone" was taxable at the multi-point rate of 4%.

Conclusion:
The Joint Commissioner's decision to tax "Gramoxone" at 4% multi-point was upheld, as it was not covered by entry 66 of the First Schedule before the 1977 amendment. The appeal was dismissed without costs.