Tariff classification of ammonium nitrate shifts to residual chemicals entry after amendment removes it from specific fertiliser category

Ammonium nitrate, once included within the fertiliser entry, was omitted from that specific tariff entry after amendment and could not be treated as the same as calcium ammonium nitrate. As it remained a chemical not specifically named in the amended fertiliser entry, it fell within the residual entry for dyes and chemicals not otherwise mentioned in the Schedule. The tax classification therefore shifted from the specific entry to the general residual entry, with the result that the commodity was taxable under the residual provision and the Revenue's classification was upheld.

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Issues: Whether ammonium nitrate was classifiable under entry 21 of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959 or under entry 138 of the First Schedule for the relevant assessment year.

Analysis: Entry 21 originally covered chemical fertilisers and included ammonium nitrate, but the entry was amended with effect from 6 August 1970 and again from 2 February 1977, and ammonium nitrate was no longer included. The item referred to as calcium ammonium nitrate was distinct from ammonium nitrate and could not be treated as the same commodity. Entry 138 covered dyes and chemicals other than those specifically mentioned in the Schedule, and ammonium nitrate, being a chemical and no longer specifically mentioned in entry 21, fell within that residual entry.

Conclusion: Ammonium nitrate did not fall under entry 21 and was taxable under entry 138 at the relevant time, in favour of Revenue.

Final Conclusion: The revision succeeded and the assessment made by the revenue authorities was restored.

Ratio Decidendi: Where a commodity is expressly omitted from a specific tariff entry by amendment, it cannot continue to be classified under that entry and will fall under the general residual entry if it answers that description.

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