MYSORE AGRO SERVICE CENTRE Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THESE appeals by the assessee under the provisions of the Karnataka Sales Tax Act, 1957 ("the Act", for short) involve the question whether "lime" is an item falling under chemicals vide entry 79 of the Second Schedule or whether it is a pesticide falling under entry 117 of the Second Schedule. The question arose in respect of the years 1981-82, 1982-83 and 1983-84. The Revenue contended that "lime" is a chemical under entry 79 of the Second Schedule which refers to chemicals of all kinds. This contention was accepted in the order made by the Commissioner of Commercial Taxes in the proceedings initiated by him under section 22-A of the Act. The assessing authority has accepted the contention of the assessee that the article in question was sold by the assessee to coffee estate who purchased the same as pesticide.

(2.) SRI Ramabhadran, learned counsel for the assessee, contended that the meaning attributable to a word or phrase in an entry of this sort is the meaning attributed to the same by the persons involved in the trade. The learned counsel contended that those who dealt with the lime in question dealt with the same as pesticide. The assessee sold the article as pesticide as the purchasers wanted the same to be used as pesticide in the coffee estate.

(3.) THE learned counsel referred to the above passage. It no doubt supports the contention of the assessee in the sense that in the instant case, lime was sold as pesticide and the consumer purchased the same accordingly.