NECTRA LAB ASSOCIATES Vs. STATE OF KERALA

JUDGEMENT

(1.) The question raised in these connected Tax Revisions filed by the petitioners is whether animal feed concentrate with vitamin AD3 sold by the petitioners under the brand name Calcimin - D is cattle feed assessable to tax at the rate of 4% under item 26 of the 1st Schedule to the Kerala General Sales Tax Act (hereinafter referred to as "the Act") or at the rate of 8% under item 17 of the 1st Schedule to the Act. Besides, the manufacture and sale of the above product, the petitioners are engaged in the manufacture and sale of dog biscuits. Since dog biscuits are not covered in any specific entry, turnover of the same was also assessed under the residua; entry along with the turnover of Calcimin-D. We have heard counsel appearing for the petitioners and Government Pleader appearing for the respondent.

(2.) We do not find any entry for dog biscuits under the 1st Schedule to the Act and, therefore, the turnover of this item was rightly assessed under the residual entry at 8%. However, we will proceed to examine the question whether Calcimin-D can be treated as cattle feed to be assessed under entry 26 of the 1st Schedule to the act at 4% as claimed by the petitioners. For easy reference, we extract hereunder entry 26 of the 1st Schedule to the Act. <p>Cattle feed (including gingili At the point of first oil cake, groundnut oil cake, sale in the state by a 4% tamarind seed tamarind dealer who is liable seed power, husks of pulses, to under Section 5. bran, fish feed and poultry feeds) other than those specifically mentioned in this Schedule

(3.) Counsel appearing for the petitioners relied on the decision of the Supreme Court in Sun Export Corporation v. Collector of Customs,1997 6 S.C.C. 564 and contended that the petitioners product, namely Calcimin-D is also cattle feed. The Government Pleader, on the other hand, contended that the entry in the Customs Act in the decision above referred is different from entry 26 and, therefore, the decision has not application. In order to appreciate the nature of the claim, we have to examined the purpose and use of the petitioner s product.