Turnover-tax exemption for pesticides includes fungicides and herbicides under the notification's ordinary meaning.

Exemption from turnover tax under the Karnataka Sales Tax Act is explained by reference to the wording of the notification itself, not by later amendments to the Second Schedule. The commentary states that the later inclusion of fungicides, herbicides and weedicides in the schedule does not narrow the expression "insecticides and pesticides" in the exemption notification. It also treats gramoxone, vitto-plant, zimag and similar compounds as falling within the ordinary, broad meaning of pesticides, which includes fungicides, herbicides and weedicides. On that basis, second and subsequent sales of such goods are described as covered by the turnover-tax exemption.

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Issues: (i) Whether the amendment to entry No. 117 of the Second Schedule to the Karnataka Sales Tax Act, 1957 could be relied upon to hold that fungicides, herbicides, insecticides and weedicides were not covered by the expression "insecticides and pesticides" for the purpose of exemption from turnover tax; (ii) whether gramoxone, vitto-plant, zimag and similar chemical compounds were outside the expression "insecticides and pesticides" merely because they were described as fungicides, herbicides or weedicides; (iii) whether the second and subsequent sales of such goods were liable to turnover tax despite Notification No. FD 32 CSL 81 dated June 29, 1981.

Issue: Whether the amendment to entry No. 117 of the Second Schedule to the Karnataka Sales Tax Act, 1957 could be relied upon to hold that fungicides, herbicides, insecticides and weedicides were not covered by the expression "insecticides and pesticides" for the purpose of exemption from turnover tax.

Analysis: The exemption under section 6-B of the Karnataka Sales Tax Act, 1957 had to be tested with reference to the language of the notification and not by importing the later treatment of goods in the Second Schedule. The entries in the Schedule were held to have no controlling relevance to turnover tax under section 6-B. The subsequent amendment inserting fungicides, herbicides and weedicides into entry No. 117 did not justify treating them as excluded from the expression "insecticides and pesticides" in the notification.

Conclusion: The amendment to entry No. 117 did not defeat the assessee's claim to exemption.

Issue: Whether gramoxone, vitto-plant, zimag and similar chemical compounds were outside the expression "insecticides and pesticides" merely because they were described as fungicides, herbicides or weedicides.

Analysis: The expression "insecticides and pesticides" was not defined in the Act, so its ordinary meaning and accepted usage were applied. On that basis, pesticides were treated as a broad class of chemicals used to destroy pests, and fungicides, herbicides and weedicides were regarded as falling within that broad class. The interpretation was reinforced by the accepted understanding of pesticides and by the principle that exemption notifications, once the goods are shown to fall within the class, are to be construed broadly and purposively.

Conclusion: Gramoxone, vitto-plant, zimag and similar chemical compounds fell within the expression "pesticides".

Issue: Whether the second and subsequent sales of such goods were liable to turnover tax despite Notification No. FD 32 CSL 81 dated June 29, 1981.

Analysis: The notification exempted second and subsequent sales of insecticides and pesticides from turnover tax under section 6-B of the Karnataka Sales Tax Act, 1957. Since the goods in question were held to be pesticides, the exemption applied and turnover tax could not be levied on those sales.

Conclusion: The second and subsequent sales were exempt from turnover tax under the notification.

Final Conclusion: The revision petitions succeeded, the contrary orders were set aside, and the matter was sent back for re-computation of tax liability in accordance with the court's findings.

Ratio Decidendi: For exemption from turnover tax, the expression used in the notification must be construed on its own terms and in its ordinary, purposive sense; if the goods fall within the exempted class, later changes in the schedule do not narrow the notification, and broadly understood pesticides include fungicides, herbicides and weedicides.

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