The specific entry in a tax act will exclude the general entry if a product falls under both, and the popular meaning of terms and specific legislative intent must be considered in interpreting the entries.

( 1 ) THE petitioner is an assessee under the Karnataka Sales Tax Act, 1957 (for short the Act ). For the assessment period 1999-200, the petitioner declared the gross and taxable turnover at Rs. 3,38,49,121/- and Rs. 1,84,03,986/- respectively. The taxable turnover include first sale of NITROUS OXIDE to Hospital and Nursing Homes for anesthetic purposes to an extent of Rs. 14,48,084-25. The petitioner had classified the sale of Nitrous Oxide as a chemical falling under Entry No. 10-A (Part-C) of II Schedule, which related to Chemicals of all kinds including copper sulphate, caustic soda, dyes and sulphur. The rate of tax for substances falling under Entry 10a was 4% from 1-4-1996 to 31-12-1999 and 8% from 1-1-2000 to 31-03-2000.

( 2 ) THE Assessing Authority by order dated 30-07-2001, rejected the classification of Nitrous Oxide as a chemical falling under Entry No. 10-A (Part-C) of II Schedule. He treated it is an unclassified goods falling under Section 5 (1) of the Act, for which the rate of tax was 10%.

( 3 ) IN an appeal filed by the petitioner, the Appellate Authority held that the Nitrous Oxide was an industrial gas falling under Entry-3 (of Part-II) Schedule. The said entry related to Industrial gas such as oxygen, acetylene, nitrogen and the like, for which the tax was 10% from 01-04-1998 to 31-12-1999 and 12% from 01-01-2000 to 31-03-2000.

( 4 ) IN a second appeal filed by the petitioner, the Karnataka Appellate Tribunal held that Nitrous Oxide fell under Entryno. 21 (Parts-S) of II Schedule. The said entry related to surgical and dental instruments, tools and aids for which the rate of tax was 10% during the relevant year.

( 5 ) FEELING aggrieved, the petitioner has filed this revision petition under Section 23 (1) of the Act. The petitioner relies on a Test Certified dated 12-09-2000 issued by the Bangalore Test House which reads thus: nitrous Oxide is also called by the Chemical Name Dinitrogen Mono oxide or hyponitrous acid anhydride with molecular formula of N O and Molecular weight of 44. 02. It contains 63. 65% Nitrogen (N) and 36. 35% of Oxygen (O ). It is prepared by thermal decomposition of Ammonium Nitrate. Nitrous Oxide is colourless gas, slightly sweetish odour and taste m. p 90. 81 ; b. p 88. 46 freely soluble in Sulphuric acid, soluble in alcohol, ether, oils. Use: Anesthetic by inhalation and analgesic. Ref: Merck Index. Page No. 1051. Remarks: From the above facts, it is concluded that Nitrous Oxide is a Chemical. The petition raises the question whether Nitrous Oxide is to be treated as a chemical falling under entry No. 10-A of PART-C of II Schedule or as a surgical aid falling under Entry No. 21 of Part-S of II Schedule.

( 6 ) CHEMICAL in a broad sense refers to all substances produced by any Chemical process. The principal use of Nitrous Oxide (laughing gas) is as an anesthetic in surgical operations procedures of short duration. The fact that Nitrous Oxide is produced by a chemical process and therefore would fall under the general definition of chemical is not dispute by the State. What is contended by the State is that the Nitrous Oxide falls under a specific separate entry enacted by the State dealing with surgical aids (Entry No. 21 of Part-S of Second Schedule) and therefore, it gets excluded from the general entry relating to chemicals (Entry No. 10-A of Part-C of II Schedule ). It is also submitted that the items enumerated as being inclusive in the definition of chemicals in indicative of the fact that only solid substances and not gases are intended to be included under the said entry.

( 7 ) IN DEPUTY COMMISSIONER OF SALES TAX vs G. S. PAI and Co. , 1980 (45) STC 58 (AIR 1980 SC 611), the Supreme Court observed:now there is one cardinal rule of interpretation which has always to be borne in mind while interpreting entries in sales tax legislation and it is that the words used in the entries must be construed not in any technical sense nor from the scientific point of view but as unders

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