NELKADIR BONE INDUSTRIES, EDAYAR Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) ISSUES raised in these writ petitions are connected. Therefore, these cases were heard together and are disposed of by this common judgment treating W.P.(c) No.1737 of 2009 as the leading case.

(2.) PETITIONERS in Writ Petition No.1737 of 2009 are manufacturers of 'bone meal'. During the assessment years 2003-2004 and 2004-2005, petitioners filed returns claiming exemption from tax on the ground that 'bone meal' is included in Item 17 of the third Schedule to the KGST Act. That claim of the petitioners was rejected and assessment against the first petitioner was completed for the year 2003-2004 by Ext.P1 order and against the second petitioner for the year 2004-2005 by Ext.P2 order. By these orders, tax was levied on the petitioners at the rate of 4%, on the basis that 'bone meal' is included in item No.57(V) of the first Schedule to the KGST Act. It is thereupon that the petitioners filed this writ petition seeking a declaration that exclusion of 'bone meal' from organic manures under Entry 17 of the Third Schedule to the KGST Act and its inclusion under Entry 57 to the first Schedule among fertilizers is arbitrary and discriminatory. Consequential orders for setting aside Exts.P1 and P2 assessment orders is also sought for.

(3.) READING of Entry 17 of the Third Schedule shows that various items including organic manure other than those specifically mentioned in the First Schedule are included therein. However, the term organic manure has been given the meaning in the explanation added by the legislature. For a particular manure to qualify as an organic manure, the manure shall be produced or derived naturally from plants or animals or from both. Therefore, the production or derivation of manure from plants or animals or from both shall be by a natural process. In other words, there cannot be an intervention of any mechanical or other unnatural process in the production of a manure to qualify it to be an organic manure for the purpose of Entry 17 of the third Schedule.