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TMI Blog2019 (10) TMI 676X X X X Extracts X X X X X X X X Extracts X X X X ..... e taxed on the entry of mosquito repellent under Schedule II of the Madhya Pradesh Entry Tax Act, 1976 within the meaning of Section 3 (1) b of the said Act. Appeal dismissed - decided in favor of Revenue. - Tax Reference No.101/2017 - - - Dated:- 26-9-2019 - S.C. Sharma, J ORDER PER : S.C. SHARMA, J: Parties through their counsel. The present Tax Reference has been made by the Madhya Pradesh Commercial Tax Appellate Board in exercise of power conferred under Section 17 (1) of the Madhya Pradesh Commercial Tax Act, 1994. The following two questions have been referred before this Court, which are reproduced as under: 1. Whether on the facts and circumstances of the case the Appellate Board was justified in coming to conclusion that the Applicant is liable to be taxed on the entry of Mosquito repellent under Schedule II of entry tax Act within the meaning of Section 3 (1) (b) of the said act. 2. Whether on the facts and circumstances of the case the Appellate Board was justified in coming to the conclusion that the assessee is liable to taxed on entry of Mosquito repellent under Schedule II ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 05. The question whether mosquito repellent is insecticide or not was considered by the Division Bench of Allahabad High Court in the case of Knight Queen Industries (P) Ltd. through its authorized Signatory sh. Dileep Kumar Gupta v/s the State of U.P. Through Institutional Finance Secretary, U.P. Shasan, The Additional Commissioner Grade-I, Trade Tax and the Deputy Commissioner (Assessment) Trade Tax reported in (2006) 145 STC 226 (All). Paragraphs 20 to 29 of the same reads as under: 20. We shall now examine the decisions which deal with insecticides and Pesticides'. In Sonic Electrochent (P) Ltd. v. State of Orissa and Ors. 1992 STC 117, Orissa High Court considered whether 'Mosquito Repellent Mats' which admittedly were 'insecticides', were entitled to exemption as 'pesticides' and it observed :- .The authorities having exempted pesticides from the levy of tax in exercise of powers under Section 6 of the Orissa Sales Tax Act without having any limitation with regard to the kind of pesticides, it is difficult for us to give a limited meaning to the aforesaid expression pesticides . In our considered opinion, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating the import, manufacture, sale, transport, distribution and use of insecticides. We have already referred to the relevant provisions of the Insecticides Act, 1908 for the purpose of showing that nobody can deal with insecticides otherwise than in accordance with the provisions of the Insecticides Act. Accordingly, we are to hold that mat manufactured by the applicant is understood in commercial parlance or trade circle as an insecticide and as such it will be governed by the Act of 1954.... 23. In Transelektra Domestic Products Private Limited v. State of Kerala and Ors. 122 STC 229, the Kerala High Court also considered whether Mosquito Repellent Mats manufactured in the name Good Knight and Banish could be classified as 'insecticide' for the purpose of levying Sales ft Tax under the Kerala General Sales Tax Act, 1963 and after placing reliance of the Madras High Court in the aforesaid case of Transelektra Domestic Products (supra) observed:- 3 These goods are covered by the provisions of the Insecticides Act and these goods can be classified if a specific entry and cannot be included in unclassified items., When we can attach a pare ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parlance and then concluded that Good Knight mats have been treated by persons dealing with it as repellent'. Having considered the submissions advanced by learned Counsel for the parties, the material on record and examination of the facts of these petitions, we find from the pleadings that Articles/goods sold by the petitioners, though used as household articles, is never the less house hold 'insecticide' which fact is also mentioned on their products. The chemical composition used in manufacturing the goods in question (though widely known and popularly understood as Mosquito Repellent) is allethrin which is an 'insecticide. The petitioners are using chemicals for manufacturing the finished goods which have been treated as 'insecticides' and under the provisions of the Insecticides Act, 1968 a certificate has been issued by Government of India, Ministry of Agriculture which leave no scope of doubt that allethrin which is used in the product sold by the petitioners is 'insecticide'. Insecticides Rules, 1971 provides for the manner of labelling. Labelling/packing of the products of the petitioner is as per the afore-q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . (supra) The learned Judge in M/s. Priya Distributor (supra) had also placed reliance upon the said decisions.' 06. In the present case, the same issue is involved and mosquito repellent has been held to be an insecticide, not only by the Division Bench of Allahabad High Court but, also by the Kerala High Court in the case of Transelektra Domestic Products Private Limited v/s The State of Kerala Others reported in 122 STC 229 and by the Madras High Court in the case of Transelektra Domestic Products Private Limited Others v/s Commercial Tax Officer reported in 1990 STC 436. 07. The mosquito repellent contains an insecticide and it not only repels the mosquito but also is capable of killing the mosquito, and therefore, is covered under the entry of insecticides and pesticides. 08. The Hon'ble Supreme Court in the case of Sonic Electrochem Another v/s Sales Tak Officer and Others reported in (1998) 6 SCC 397, while dealing with Gujrat Sales Tax Act, 1969, has dealt with the similar issue. Under the Gujrat Sales Tax Act, 1969, there was specific entry i.e. Entry No.129 under Schedule II Part A and the same reads as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X
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