2008 (4) TMI 489

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....lved in this Civil Appeal is whether mosquito repellants and other items fall under Entry 44(5) of Schedule III to Kerala VAT Act, 2003. The items are enlisted as follows : Sl. No. Trade Name Name of Active Ingredient Entry in relevant Statute Licensing Authority 1. Mortein Coil, 8 hours, 10 hours and 12 hours D-trans Allerthrin Entry 55 in Schedule to Insecticides Act, 1968 (at page 29 of Volume 2). License required under Section 3(e) for manufacture. Mandatory declarations are made under Rule 19 of Insecticide Rules, 1971 Central Insecticide Board (CIB) as per Insecticide Act, 1968. 2. Mortein Mats Prallethrin Entry 120 in Schedule to Insecticides Act, 1968 (at page 29 of Volume 2). License requir....

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....to be issued by the State Government. The narrow controversy in the present case which arose for determination before the High Court was : Whether the above enlisted items fall under para 44(5) read with Section 6(1)(a) of the 2003 Act? 4. According to the appellant, the said items fall under Para 44(5) which, at the relevant time, attracted duty at the rate of 4%, whereas, according to the Department, the said items came under Section 6(1)(d) read with Notification No. 82 of 2006 - Entry No. 66 which attracted the rate of duty of 12.5%. 5. We have examined the impugned judgment. In this case, we find that the High Court in the impugned judgment has failed to notice the Rules of Interpretation which require that in cases whe....

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....se, the High Court has held that looking to the HSN Code 3808.10.91\026 repellant for insects such as flies, mosquito, has a direct relation to Heading 3808. At the same time, the High Court has held that HSN Code 8516.79.20 of the Customs Tariff Act which deals with electrical or electronic devices for repelling insects fall under HSN Code 8516 and, looking at that HSN Code, the High Court has held that Code 3808.10.91 has to be read along with Heading 3808. 8. The basic controversy, therefore, which arose before the High Court was whether the above items fell within the sub-heading 3808.10.91. In this connection, we find that Kerala VAT Act is aligned with Customs Tariff which in turn is aligned with HSN and consequently each prod....