Important Point
High Court is right in its conclusion that ‘JET-MAT’ produced by appellant is nothing but a mosquito-repellent within the ambit of entry 129 of Schedule II Part A of Gujarat Sales Tax Act, 1969 and, therefore, is taxable.

Judgment

Pattanaik, J.-The short question that arises in this appeal is wheth­er JET-MAT produced by the appellant would come within Entry 129 of Schedule II Part A of the Gujarat Sales Tax Act, 1969 (hereinafter referred to as ‘the Act’) issued under Section 49 of the Act. The said entry at the relevant point of time read thus :

S.No. Description Rates of Rate of           of goods Sales tax purchase tax

129 Mosquito Twelve paise Twelve paise Repellents in the rupee in the rupee

2. Though in the High Court appellant had challenged the validity of Entry 129 of Schedule II Part A of the Act on the ground that it violates Article 14 of the Constitution and the High Court negatived the same, the appellant in this appeal does not challenge the said conclusion of the High Court. After examining different entries the High Court by the impugned judgment came to the conclusion that JET MAT is nothing but a mosquito repellent within the ambit of Entry 129, and therefore, is taxable.

3. Mr. Salve learned senior counsel appearing for the appellant con­tended that the JET MAT manufactured by the appellant is an insecti­cide and not a repellent and would therefore could be exempted from tax under Entry 98 to the extent contained therein and the conclusion of the High Court that it is a repellent and as such taxable under Entry 129 is erroneous. In support of this contention Mr. Salve referred to the Certificate of Registration in favour of the appellant issued under Section 9(3) of the Insecticides Act, 1968, the leaflet and the approved label of the commodity in question, the formulation contents of the said commodity and the chemistry of the active ingre­dients and submitted that all these documents unequivocally indicate the product in question to be an insecticide. The learned counsel also submitted that an exemption notification has to be construed broadly and widely as has been held by this Court in the case of Bombay Chemi­cal Pvt. Ltd. v. Collector of Central Excise, Bombay1, and consequent­ly there would be no justification not to hold the JET MAT to be an insecticide and as such exempted from levy of sales tax on the sale and purchase of the same under Entry 98 of the Act. Mr. Salve also in this connection placed reliance on a decision of the Madhya Pradesh High Court in Misc. Petition No. 1452 of 19892, wherein the Madhya Pradesh High Court held that product to be an insecticide and a judgment of the Orissa High Court in OJC No. 8126 of 19923, wherein the Orissa High Court took the view that the JET MAT was a pesticide and as such exempted under the notifica­tion issued under Section 6 of the Orissa Sales Tax Act. Mr. Dholakia, learned senior counsel appearing for the respondent on the other hand contended that the product of the appellant is nothing but a mosquito repellent coming within the ambit of Entry 129 of the Act and a repel­lent does not cease to be so merely because by its action mosquitoes are also killed. According to Mr. Dholakia the High Court was fully justified in its conclusion that the product manufactured by the appellant comes within the ambit of Entry 129.

4. It may be noticed that prior to August, 1990, namely, before inser­tion of Entry 129 the product in question with which we are concerned was being taxed under the residuary Entry 13 of Schedule III of the Act. With effect from 1.8.1990 Entry 129 was inserted in Schedule II Part A of the Act and a notification was also issued under Section 49(2) granting partial exemption to the sale or purchase of pesticides and insecticides under Entry 98. In view of the specific Entry 129 dealing with mosquito repellents it is difficult to accept the contention of the learned counsel for the appellant that the product in question will not come within the ambit of Entry 129 since one of its consti