Plant-protection exemption applies to technical-grade pesticides and insecticides sold in concentrated form if essential character remains unchanged.

Technical-grade insecticides, pesticides and weedicides in concentrated form remained covered by Entry 38B of Schedule B to the Haryana Value Added Tax Act, 2003 because they satisfied both statutory conditions: they were pesticides, weedicides or insecticides, and they were used for plants only. Dilution with inert material and emulsifying agents did not change their essential character or amount to manufacture. The Court accepted the record showing that the products were registered insecticides and pesticides meant for crop protection, and held that an exemption entry applies where goods answer the essential characteristics of the specified category, even if sold in technical form. The goods were therefore exempt from tax.

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Issues: Whether technical grade insecticides, pesticides and weedicides in concentrated form, which are diluted with inert material and emulsifying agents before end use, fall within Entry 38B of Schedule B to the Haryana Value Added Tax Act, 2003 as goods used for plants only.

Analysis: Entry 38B requires satisfaction of two conditions: the goods must be pesticides, weedicides or insecticides, and they must be used for plants only. The goods in question were found on the record to be registered insecticides and pesticides and to remain of the same character even after dilution, because dilution with inert material did not amount to manufacture. The material placed before the Court showed that the products were meant for crop protection and were in fact used for plants only. The Court also relied on the principle that an exemption entry describing a category of goods must be applied to goods answering the essential characteristics of that category, and once a product satisfies that test it cannot be excluded merely because it is supplied in concentrated or technical form.

Conclusion: The goods fell within Entry 38B of Schedule B to the Haryana Value Added Tax Act, 2003 and were exempt from tax.

Ratio Decidendi: A technical-grade pesticide, insecticide or weedicide does not cease to be covered by an exemption entry for goods used for plants only merely because it is sold in concentrated form and requires dilution before application, if its essential character and end-use for plant protection are established.

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