Broad interpretation of plant protection pesticides brings soil-applied Aldrex 30 EC within the sales tax exemption entry.

The expression "pesticides for plant protection" was construed broadly by reference to actual use. Aldrex 30 EC was treated as a pesticide used against insects and soil pests, including termites affecting seeds, roots and standing crops, and was therefore covered by item 27 of the Third Schedule to the Delhi Sales Tax Act, 1975. The fact that it was not recommended for spraying on crops did not exclude it from the exemption entry, because plant protection may be achieved through seed treatment, soil application or irrigation water. The product was accordingly treated as exempt from sales tax.

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Issues: Whether Aldrex 30 EC fell within item 27 of the Third Schedule to the Delhi Sales Tax Act, 1975 as a pesticide for plant protection and was therefore exempt from sales tax.

Analysis: The expression "pesticides for plant protection" was construed broadly in light of the actual use of the product. Aldrex 30 EC was found to be used against insects and pests of soil, including termites that attack seeds, roots, and standing crops. The fact that it was not recommended for spraying on crops did not exclude it from the entry, because pesticides may serve plant protection in different forms and by different methods, including treatment of seeds, soil, and irrigation water. The material referred to in agricultural publications also supported its use as a plant-protective pesticide.

Conclusion: Aldrex 30 EC was held to be a pesticide used for plant protection and thus fell within item 27 of the Third Schedule, entitling the dealer to exemption from sales tax.

Final Conclusion: The reference was answered in favour of the dealer by holding that the product was covered by the exemption entry.

Ratio Decidendi: A product used to protect plants from pests at any stage, including through seed treatment, soil application, or irrigation use, falls within an exemption entry for pesticides for plant protection even if it is not suitable for spraying on crops.

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