1993 (3) TMI 342 - HC - VAT and Sales Tax

Summary

Issues involved:
Interpretation of whether mosquito repellant mat falls under the category of "pesticides" for exemption from sales tax as per the notification issued under section 6 of the Orissa Sales Tax Act, 1947.

Judgment Summary:

The petitioner, a manufacturer of mosquito repellant mat, claimed tax exemption under the notification exempting "pesticides" from sales tax. The Sales Tax Officer initially accepted the claim but later issued notices challenging the exemption based on the classification of the product as an "insecticide" rather than a "pesticide." The appellate authority upheld the tax liability on the grounds that the product was an "insecticide" and not covered under the exemption for "pesticides."

The High Court entertained the writ petition despite the availability of alternative remedies, as the issue was deemed a pure question of law. The Court examined the definitions and classifications of "pesticides" and "insecticides" from various sources, including legal acts, publications, and encyclopedias, to determine whether "insecticides" should be considered a subset of "pesticides."

The Court concluded that based on the broad definition of "pesticide" encompassing various types of pest-killing substances, including insecticides, the product in question should be considered a "pesticide" and thus entitled to the exemption from sales tax. The Court set aside the previous assessment orders and directed a fresh assessment in line with their interpretation.

The judgment was delivered by Justices Patnaik and Dash, with Justice Dash concurring. The writ petition was allowed, with no costs imposed on the petitioner.