T. U. MEHTA, J. - (1.) THIS reference involves the question, whether the chemical products known as Aldrex, Dieldrex and Endrex, which are sold by the applicant, are the "chemicals" covered by entry 4 of Schedule C to the Bombay Sales Tax Act, 1959, or are the articles which fall within the residuary entry 22 of Schedule E of the Act.
(2.) THIS reference has arisen as the applicant applied to the Deputy Commissioner, Sales Tax, on 5th November, 1968, under section 52 of the Bombay Sales Tax Act, 1959 (hereinafter referred to as the "act"), for determining the rate of tax payable on the sales of the above-named articles. The Tribunal in appeal filed by the petitioner has held that these articles do not fall within entry 4 of Schedule C of the Act and that, therefore, the revenue has rightly taken these articles as covered by the residuary entry 22 of the Schedule E. Feeling aggrieved by the decision of the Tribunal, the petitioner has approached this court in this reference. The articles referred to above are insecticides which are used for the production of agricultural products. The petitioner is found to be purchasing these articles from M/s. Burmah-Shell and selling them locally in the market. The trade literature relating to all the three articles was produced during the course of the inquiry. This literature shows that all these articles are poisonous, and may be fatal by skin contact, inhalation or swallowing spray mist. The trade literature describes these articles as "shell Chemicals" for agriculture and industry. They are used for spraying the standing agricultural produce by mixing them with enough water, as directed by the manufacturers. The articles were also examined by Drugs and Chemicals. Testing Laboratory, Bhavnagar, and the analysis conducted by the said laboratory reveals as under : 1. "result of analysis of Endrex 20 e. c. : Endrin content : 19. 90 per cent W/v. (Hexachloro-epoxy-octahydro-endo, endo-dimethano-Naphthalene ). Volatile hydrocarbons : 68. 00 per cent W/v. Other material : 12. 10 per cent W/v. " The result of this analysis indicate in the opinion of the above-referred testing laboratory at Bhavnagar that the sample of Endrex 20 e. c. is a solution containing the above substances which are chemicals derived by chemical process. 2. "result of analysis of Dieldrex 18 e. c. Dieldrin content : 17. 8 per cent W/v. (Hexachloro-epoxy-octahydro-endo, exo-dimethano-Naphthalene ). Volatile hydrocarbons : 68. 00 per cent W/v. Other material : 2. 15 per cent (by difference ). " The opinion of the laboratory is that Dieldrex 18 e. c. is a solution containing the above-named substances which are chemicals derived by chemical process. 3. "result of analysis of Aldrex 80 e. c. Aldrin content : 29. 8 per cent W/v. Hexachloro-Hexahydro-endo, exo-dimethano-Naphthalene. Volatile hydrocarbons : 68. 00 per cent W/v. Other material : 2. 2 per cent (by difference ). " The opinion of the laboratory is that Aldrex 30 e. c. is a solution containing the above-named substances which are chemicals derived by chemical processes. The Tribunal, after referring to this analysis and the opinion given by the laboratory, found that the products in question were the compound of three different types of commodities of which 17 to 30 per cent is the main chemical known by names resembling the commercial names under which the compounds were sold. The Tribunal concluded that the articles did not fall within entry No. 4 of Schedule C, but within the residuary entry, namely, entry No. 22 of Schedule E of the Act. Shri Pathak, who appeared before us contended that entry No. 4 of Schedule C covers all dyes and chemicals and since these disputed articles are chemicals as found in the analysis, referred to above, they should be held as falling within this entry No. 4 of Schedule C.
(3.) AT this stage, it would be proper to make reference to the two entries with which we are concerned for the purpose of this reference. Entry No. 4 of Schedule C is as under : " Dyes and chemicals other than those specified in any other entry in this or any other schedule. " Entry No. 22 of Schedule E, which is the residuary entry is in the following terms : " All goods other than those specified from time to time in section 14b and in Schedules A, B, C and D and in the preceding entries. " It is thus evident that entry No. 4 of Schedule C is the residuary entry for dyes and chemicals while entry No. 22 of Schedule E is the general residuary entry covering all articles which are not specifically described in any of the four schedules attached to the Act. The short question which arises to be determined is whether the disputed articles can be considered as chemicals as stipulated by entry No. 4 or not. If they can be considered as such chemicals, then the petitioner should succeed, but if they are not found to be "chemicals" as stipulated by entry No. 4, then obviously they would fall within the ambit of entry No. 22 of Schedule E because there is no specific entry in any of the four schedules mentioning any of these four articles.;