TaxTMI 
TaxTMI 
TaxTMI 
2013 (5) TMI 29
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....led returns claiming exemption from tax on the ground that 'bone meal' is included in Item 17 of the third Schedule to the KGST Act. That claim of the petitioners was rejected and assessment against the first petitioner was completed for the year 2003-2004 by Ext.P1 order and against the second petitioner for the year 2004-2005 by Ext.P2 order. By these orders, tax was levied on the petitioners at the rate of 4%, on the basis that 'bone meal' is included in item No.57(V) of the first Schedule to the KGST Act. It is thereupon that the petitioners filed this writ petition seeking a declaration that exclusion of 'bone meal' from organic manures under Entry 17 of the Third Schedule to the KGST Act and its inclusion under Entry 57 to the first S....
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....to (xxv) above, with or without the addition of other articles (on the turnover relating to components thereof which have not already suffered tax) 4. Reading of Entry 17 of the Third Schedule shows that various items including organic manure other than those specifically mentioned in the First Schedule are included therein. However, the term organic manure has been given the meaning in the explanation added by the legislature. For a particular manure to qualify as an organic manure, the manure shall be produced or derived naturally from plants or animals or from both. Therefore, the production or derivation of manure from plants or animals or from both shall be by a natural process. In other words, there cannot be an intervention of any m....
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.... in the State. Item No.135 provides a rate of 30 per cent in respect of arishtams and asavas at the point of first sale. We see no reason why arishtams and asavas should be treated differently from the general class of ayurvedic medicines covered by item No.95. It is open to the Legislature, or the State Government if it is authorised in that behalf by the Legislature, to select different rates of tax for different commodities. But where the commodities belong to the same class or category, there must be a rational basis for discriminating between one commodity and another for the purpose of imposing tax. It is commonly known that considerations of economic policy constitute a basis for encourage a certain trade or industry in the context ....
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....rocess such as neem cake and crushed neel fruit. Therefore, according to the counsel, the fact that bone meal is produced through a mechanical process, could not have resulted in its exclusion from organic manure. Going by the words of the statute only those items which are produced or derived naturally are eligible for inclusion in Item 17. Even if the case of the petitioners is accepted that would only mean that certain items which are ineligible to be included are also included in the Third Schedule. In my view, even if what is contended is factual, petitioners cannot say that yet another ineligible items should also be included through the intervention of this court. I say so for the reason that equality in law cannot be claimed in il....