9911796707
TMI Blog1991 (8) TMI 312X X X X Extracts X X X X X X X X Extracts X X X X ..... -76. Exemption was claimed on a turnover of Rs. 3,01,465.38 representing second sales of "Gramoxone". The assessing authority disallowed the claim of exemption holding that the commodity "Gramoxone" comes under "weedicides" which were liable at 4 per cent multi-point tax. After noticing certain other defects also the accounts of the assessee had been rejected and recourse was had to best of judgment assessment. The assessing authority, accordingly, estimated the total and taxable turnover of the assessee at Rs. 34,39,567.12 and Rs. 23,11,213.35, respectively. Additional tax and surcharge were also levied on the above turnover at the prescribed rates. The assessee went up in appeal before the Appellate Assistant Commissioner, Coimbatore, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esticides" as it was a species, of "fungicides and weedicides". Learned counsel argued that entry 66 of the First Schedule had been amended and substituted by a new entry, which included "fungicides", and since that amendment incorporated by Act 7 of 1977 was of a clarificatory nature in respect of the original entry, the Appellate Assistant Commissioner was right in holding that the commodity "Gramoxone" was covered under entry 66 of the First Schedule and that the Joint Commissioner fell in error in not noticing the true character of the commodity and holding that since the amendment of the entry had not been given retrospective effect, the benefit of that entry was not available to the assessee. Learned counsel also placed reliance on se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ein addressed a communication to the Board of Revenue on August 30, 1976, seeking certain clarifications and the Board of Revenue, in B.P. Rt. No. 4406/76 dated September 29, 1976, informed the assessee about the rates of tax on various commodities, including agrochemicals. The Board stated: "(4) Agrochemicals: (a) Pesticides and insecticides. 3 1/2% single point under item 66 of the First Schedule at the point of first sale in the State. (b) Fungicides, weedicides, 4% multi-point." micronutrients zinc sulphate. It seems that the amendment was also effected of the entry by Act 7 of 1977 only because of the doubts which were being entertained about the true ambit and scope of entry 66 of the First Schedule. The Board of Revenue was, thus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intention cannot be attributed to the Legislature. If "fungicides, herbicides and rodenticides" were included in the expression "insecticides" or "pesticides", as canvassed by the learned counsel, one fails to understand the logic of the amendment made in 1977. If the argument on behalf of the assessee were to be accepted, it would almost render the amendment redundant and the courts do not lean in favour of making any provision of a statute redundant. In our opinion, the Amending Act of 1977 is not clarificatory in nature, for had it been so, the entry would have read differently. The acceptance of the argument would tantamount to rewriting the original entry. Courts cannot do that. The amending Act, in our opinion, is clearly declaratory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the situation. The Legislature is presumed to be aware of the need of the people and while classifying the entries in a particular Schedule, if it chose not to include certain commodities in the First Schedule, its intention is obvious that it did not wish to extend the benefit of single point taxation in respect of those commodities. Since "fungicides" was not included in entry 66, as it existed at the relevant time, and it was specifically added in the original entry by the Amending Act, it is obvious that the intention of the Legislature was to extend the benefit of single point taxation to "fungicides" only from the date of the addition, viz., September 13, 1977. The commodities covered by the amended entry are wider than those in the o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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