1972 (8) TMI 124

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.... in this case is as to whether the assessee, who is a dealer in chemical fertilisers, can be taxed on his sales of the said fertilisers. The assessee purchases different items of chemical manures and then mixes them with some organic manure as chemical fertilisers. It is not in dispute that the mixture sold by the assessee will come under item 21 of Schedule I. But the assessee has taken up the st....

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.... the sale of such a mixture as second or subsequent sales in chemical fertilisers if the components have been subjected to tax earlier. According to the learned counsel, if item 21 merely referred to the words "chemical fertilisers", it could be said that the benefit of exemption from levy of sales tax on second sales cannot be availed of, unless the same goods are sold again, but the detailed ref....

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....n this case if the assessee has purchased the various items of chemical manure referred in item 21 and brings about a new product by mixing one or more of the said articles with one or more of any organic manure, that product cannot be said to be the same chemical manure or fertiliser which he had purchased and which had already been subjected to tax. The produce got by the petitioner by mixing on....

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....ly altered entry 21 of Schedule I. What the learned counsel states is that though the amendment came into force in August, 1970, it is only declaratory or clarificatory in nature, that even before the amendment, the legal position was the same, and that the intention of the Legislature should be deemed to be taken to benefit the persons like the assessee who mixes the various kinds of chemical man....