9911796707
TMI Blog1991 (3) TMI 343X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) T.M. egg formula, (3) T.M. forte, and (4) T.M. 5. The company sold these products under different invoices in May and October, 1975. It wanted to know the rate of tax payable on the sales of these articles. It, therefore, applied to the Commissioner of Sales Tax under section 62 of the Gujarat Sales Tax Act, 1969, for determination of that question. This application was heard by the Deputy Commissioner of Sales Tax. Before him, the case of the opponent was that as all these products are marketed as poultry-feed and used as such, they are covered by entry 25 of Schedule I to the Act relating to "poultryfeed" and thus exempt from payment of tax. On consideration of the material produced before him, the Deputy Commissioner held that T.M. poultry formula, as it is mainly used for treating and preventing diseases, cannot be regarded as poultry-feed and would fall under entry 26(1) of Schedule II, Part A pertaining to "drugs and medicines". As regards the remaining three products, he held that though they contain terramycin, which is a drug as their "primary and principal utility is that of a treatment feed given to the poultry for increasing eggs production by supplementary nutritio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese four products are basically terramycin preparations and admittedly terramycin is a drug. It is a broad-spectrum antibiotic, and is used in treatment and prevention of both systemic and local infections caused by aerobic, anaerobic and gram-positive and gram-negative bacteria, rickettsiae, apirochetes, certain viruses and protozoa. He submitted that these terramycin preparations, even when they are manufactured with vitamins, minerals or other elements, are given to the poultry with the main object of treating or preventing bacterial diseases. He submitted that such benefits or effects like early laying of eggs, increased production of eggs and rapid and better growth are only indirect effects of the poultry becoming disease free as a result of use of those products. He further submitted that these products, therefore, cannot properly be described as poultry-feed and should be held as drugs or medicines. In support of his submission, the learned Assistant Government Pleader drew our attention to the composition of these products. It cannot be gainsaid that each one of these products contains terramycin. It is also not in dispute, as stated earlier, that terramycin is a drug an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Feeding Practice in India". The learned author has pointed out that poultry-feed can be divided into three categories, viz., (i) roughages, (ii) concentrates and (iii) additives. Additives mentioned by him are (i) vitamin supplements, (ii) mineral supplements and (iii) antibiotics. As regards antibiotics it is stated that since 1950, several antibiotics have become important additives in poultry-feeds because they increase growth rate and efficiency of feed utilization by influencing the bacterial population of the digestive tract, and that antibiotics are not nutrients. The information contained in that book that vitamins, minerals and antibiotics have become important additives in poultry-feeds was not challenged before the Tribunal, nor the veracity of antibiotics have become important additives in poultry-feeds was challenged before the Tribunal, nor the veracity of the same is challenged before us. We can also usefully refer to the decision of this Court in Glaxo Laboratories' case [1979] 43 STC 386, wherein, after referring to the book entitled "Nutritive Values of Indian Cattle Feeds and the Feeding of Animals", it is observed that in the context of live-stock, which is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect to "poultry-feed" the ration to be supplied to the birds must consist of two constituents, viz., that for maintenance and that for production, that is to say, for growth or fattening and for production of eggs, meat or feathers. This Court then pointed out that in view of the changed circumstances consisting of scientific advancement and rearing of poultry on large commercial scale, poultry-feed is now regarded as something more than food essential for survival. It would consist of feed which is scientifically prepared and which aims at procuring the best yield of meat, eggs and feathers. Thus, it can safely be said that the concept of poultry-feed has changed considerably and it does not mean food for the poultry in conventional sense. It consists not only of concentrates but even additives, like vitamins, minerals and antibiotics have now become a part of it. It is in this context that we have to find out whether the four products manufactured by the opponent can properly be regarded as "poultry-feed" or not. In view of the well-settled principle that a term in a statute, like Sales Tax Act, should be construed consistently with its meaning in common parlance, or the w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacturer and for which purpose the consumer was actually using the same. We, therefore, do not think that that decision can support the contention raised by him. Before we decide whether each of the four products can properly be described as "poultry-feed", it is also necessary to consider the true scope and ambit of the two rival entries. As against the general entry of drugs and medicines, a medicine which is adapted or specially formulated as animal feed will have to be regarded as falling within the specific entry "poultryfeed". It is also well-recognised principle of interpretation that if there is a general entry and a specific entry, then the general entry must give way and in such cases it should be held that the item concerned falls within the specific entry. Therefore, even though an article can generally be described as medicine or drug, if as a result of it being adapted or so formulated as to make it good for a specific purpose, and if there is a specific entry within which such an article can be included, then in that case, it will have to be held that such an adapted article is covered by the specific entry and not by the general entry. Thus, if a drug or a medici ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
