TaxTMI 
TaxTMI 
2017 (9) TMI 677
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....order dated 17 March 2017 passed by the Full Bench of the Commercial Tax Tribunal, Lucknow, in Appeal No. 4 of 2016 (M/s Godrej Consumer Products Ltd. Rasoolpur, Delhi Merrut Road, Ghaziabad vs. Commissioner Trade Tax, Uttar Pradesh, Lucknow), whereby, the appeal of the revisionist has been dismissed. The facts on which the controversy rests is in a narrow compass. The revisionist manufactures various kinds of Mosquito repellent/destroyer products including "Good Knight Advance Fast Card". It filed an application before the Commissioner Commercial Taxes, Lucknow, U.P. under Section 59 of the UP Value Added Tax Act, seeking a clarification about the rate of tax applicable to the sales of "Good Knight Advance Fast Card". The following q....
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....unal opined that Fast Card would fall within the category of Mat, therefore, is excluded under the Entry. Further, since legislature has excluded Mosquito repellent/destroyer from the expression "insecticide", therefore, the intention of the legislature is to exclude all kinds of Mosquito repellent/destroyer. The learned Senior Counsel appearing for the revisionist would submit that Mat has been used along with the expression Mosquito repellent/destroyer, therefore, would urge that only Mosquito repellent/destroyer Mat is outside the purview of the Entry, Fast Card being a different product has not been expressly excluded, therefore, would be outside the purview of "Mosquito repellent/destroyer Mat, coil and liquid". The expression "inse....
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....ain reading of the language only mat, coils and liquid are excluded from Entry 20. The other categories of products viz. Spray, Fast Card (Mosquito Card) are not excluded from the Entry. Fast Card manufactured and marketed by the revisionist, primarily contains transfluthrin as an active ingredient, which is insecticide under the Insecticide Act 19681. Insecticide is defined under Section 3(e) of the Act 1968, which is extracted: "3(e) "insecticides' means (i) any substance specified in the Schedule; or (ii) ... ... ... ... ... ... ... or; (iii) any preparation containing any one or more of such substance." It is, further, contended that it is not in dispute between the parties that the Fast Card is insecticide in view....
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.... not according to common parlance understanding. (Refer: Ramavatar Budhiprashad vs Assistant Sales Tax Officer (1986) 3 SCC 480; Council of Science & Technology Uttar Pradesh vs. Macneill & Barry Ltd. Kanpur (1986) 2 SCC 23; Commissioner of Central Excise, New Delhi vs. M.s Connaught Plaza Restaurant, New Delhi (P) Ltd. (2012) 13 SCC 639; Commissioner of Central Excise, Calcutta v. Sharma Chemicals Works (2003) 5 SCC 60. Sales tax primarily deals with dealers who are engaged in commercial activity. Therefore, what is of the essence is to find out, upon enquiry, whether in commercial circles, Mosquito repellent/destroyer Mat is identical to or identified as Fast Card/Mosquito Card. Identity of goods is one of the essential elements to be ....
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....dentity in the market. Mat cannot be used directly by the customer unless it is accompanied by an electric machine/instrument. Whereas, Fast Card sold in rectangular leaflets is required to be merely lighted, which burns out in three minutes killing the mosquitoes and not repelling them as is in the case of Mat. Mats, coils, liquid, spray and fast card may or may not qualify as mosquito repellent/destroyer but having due regard to their chemical composition some of the products may be insecticide within the meaning of the Insecticide Act, but that what is excluded from Entry 20 is not all kinds of products used as Mosquito repellent/destroyer but only a particular kind of product mentioned, therein, viz. coils, mats and liquids and no ot....
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.... different ways and for different purpose. Mats can be used with an electric machine/instrument and not otherwise. Fast Card on the other hand, is a paper impregnated with insecticide which has to be lighted and burnt. The duration of the products is also different. The products by no stretch of imagination in common parlance are the same. The basic ingredients are also not the same, both products are known differently in trade and whether treated as a separate item in common parlance is a question of enquiry. Only specified items of Mosquito repellent/destroyer mentioned therein, has been excluded. The items that remain viz. Fast Card/Mosquito Card/Spray, whether, fall within the ambit of the specified entry would have to be determined by ....