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TMI Blog2004 (11) TMI 545X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 12A of the Act vide his order dated February 24, 2000 and had levied turnover tax under section 6B of the Act on the sales turnover of chemical fertilizer mixtures obtained out of Karnataka sales tax-suffered chemical fertilizers, being of the view that what is exempted under the notification dated June 29, 1981 and subsequent notifications, is only chemical fertilizers from the levy of turnover tax and not chemical fertilizer mixtures. These reassessment proceedings were subject-matters of appeals before the first appellate authority. By a common order dated June 29, 2000 the first appellate authority has allowed all the appeals and has set aside the levy of turnover tax on chemical fertilizer mixtures. The revisional authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Aggrieved by the said order passed by the revisional authority in SMR No. 52 of 20022003 dated October 18, 2002 the appellant is before this court. Sri Keshava Murthy, learned counsel appearing for the appellant would strenuously contend before this court that chemical fertilizer and chemical fertilizer mixtures are one and the same. Therefore, the first appellate authority was justified in setting aside the orders passed by the assessing authority in levying turnover tax on the sales turnover of chemical fertilizer mixtures obtained out of Karnataka sales tax-suffered chemical fertilizers. In support of that contention, the learned counsel has taken us through entry 11 of the Second Schedule to the KST Act and also the Explanation appen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry 11(i) speaks of chemical fertilizers other than those falling under item (ii). Entry 11(ii) of the Second Schedule to the Act speaks of chemical fertilizer mixtures of two or more chemical fertilizers on the turnover relating to components thereof, viz., individual chemical fertilizers which have not already suffered tax. The expression chemical fertilizers occurring in the opening part of the entry speaks of individual chemical fertilizers and the Legislature specifically excludes items falling under sub-entry (ii) from chemical fertilizers. The chemical fertilizer mixture is a mixture of two or more chemical fertilizers. The mixture and its components have different chemical properties of their own and their use is also different. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e product that is obtained out of mixing all these with leather meal, neem cake meal, gypsum, etc., would be a chemical fertilizer mixture. In Re. Shaw Wallace Co. Ltd. v. State of Tamil Nadu [1976] 37 STC 522 (SC), the assessee was a manufacturer and dealer in chemical fertilizers. It also prepared fertilizer mixtures by mixing various chemical fertilizers and fillers like china clay, gypsum, etc., by a shovel. The question before the court was whether the sales of such fertilizer mixtures could be considered as second sales, since components had already suffered tax. The apex court held that the fertilizer mixture is not the same article as the ingredients composing it. It is sold as a different commercial product. It is put to diff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnment in No. FD 32 CSL 81 dated June 29, 1981. The notification reads as under: In exercise of the powers conferred by section 8A of the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957), the Government of Karnataka hereby exempts, with effect from 1st July, 1981, the turnover tax payable under section 6B of the said Act by registered dealers, on the second and subsequent sales of the following goods in the State, namely: (i) Chemical fertilizers, bone-meal and oil cake, and (ii) Insecticides and pesticides. The analysis of the aforesaid notification is as under: The notification is issued by the State Government in exercise of its powers conferred under section 8A of the Act. The exemption is with effect from July ..... X X X X Extracts X X X X X X X X Extracts X X X X
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