1998 (8) TMI 503 - SC - VAT and Sales Tax

Supreme Court: Jet Mat Taxable as Mosquito Repellent under Gujarat Sales Tax Act

The Supreme Court upheld the High Court's decision that Jet mat falls under entry 129 of the Gujarat Sales Tax Act as a mosquito repellent, making it ... Whether Jet mat produced by the appellant would come within entry 129 of Schedule II, Part A of the Gujarat Sales Tax Act, 1969 issued under section 49 (sic) of the Act? Held that:- Appeal dismissed. In the case in hand when entry 129 clearly stipulates that mosquito repellent is taxable and the rate of tax has been provided therein and in view of our conclusion that the appellant’s product in question is also a mosquito repellent, no infirmity with the impugned judgment of the High Court requiring our interference. Issues:1. Interpretation of entry 129 of Schedule II, Part A of the Gujarat Sales Tax Act, 1969.2. Classification of Jet mat as a mosquito repellent or insecticide for tax purposes.3. Exemption under entry 98 of the notification for insecticides.4. Comparison with judgments from other High Courts on similar matters.Interpretation of Entry 129:The Supreme Court analyzed whether Jet mat falls under entry 129 of the Gujarat Sales Tax Act, which pertains to mosquito repellents. The Court noted that the High Court had previously determined that Jet mat qualifies as a mosquito repellent under this entry and is therefore taxable. The appellant did not contest this conclusion in the appeal.Classification of Jet Mat:The appellant argued that Jet mat should be considered an insecticide rather than a repellent, thus exempt from tax under entry 98 for insecticides. The appellant presented evidence, including registration certificates and chemical composition, to support this claim. However, the respondent contended that Jet mat is indeed a mosquito repellent, falling within the scope of entry 129. The Court ultimately held that Jet mat, despite its insecticidal properties, is primarily a mosquito repellent and taxable under entry 129.Exemption under Entry 98:The appellant's reliance on entry 98 for exemption of insecticides was dismissed by the Court. The judgment emphasized that the specific entry 129 for mosquito repellents prevails over the general entry 98 for insecticides, leading to the classification of Jet mat as a repellent subject to taxation.Comparison with Other Judgments:The Court discussed judgments from the Madhya Pradesh and Orissa High Courts, which had dealt with similar issues regarding the classification of Jet mat under different tax entries. However, the Court clarified that these decisions were not directly applicable to the interpretation of the Gujarat Sales Tax Act. The Court concluded that since entry 129 explicitly includes mosquito repellents for taxation, and Jet mat qualifies as such, there was no basis to overturn the High Court's decision. Consequently, the appeal was dismissed without costs.