JUDGMENT R.R. Rastogi, J.
1. This is the Commissioner's application in revision under Section 11(1) of the U. P. Sales Tax Act and the question involved is as to whether magnesium sulphate is taxable as chemical fertiliser as claimed by the assessee or as chemical as claimed by the revenue.
2. The assessment year is 1974-75. The respondent-assessee carried on his business in the manufacture and sale of "magnesium sulphate" and had both intra and inter State sales. The book version and the disclosed turnover were accepted by the assessing officer but he taxed the entire turnover of sales treating "magnesium sulphate" as a chemical and not a chemical fertiliser.
3. The assessee appealed and contended that "magnesium sulphate" was chemical fertiliser and from 15th April, 1974, its outturn was liable to be taxed at 3 per cent. The appellate authority did not accept that contention and the assessee again agitated this question in revision before the Additional Judge (Revisions), Sales Tax, Saharanpur. The learned revising authority has accepted the assessee's contention and has held that "magnesium sulphate" is a chemical fertiliser and its outturn is taxable as such even though it may be treated as a chemical also. Another finding given by the revising authority is that there was no material on record to suggest that the assessee had sold "magnesium sulphate" either as a chemical or to those persons who required it as chemical and not as fertiliser. Being aggrieved the Commissioner has filed the present revision.
4. After hearing the parties' counsel I find that the view taken by the learned revising authority is absolutely correct. It may first be noted that earlier the sale of chemical fertilisers was exempted from payment of tax by Notification No. ST-1805/X-900(71)-69 dated 10th March, 1970. That notification was rescinded with effect from 15th April, 1974, by Notification No. ST-II-1545/ X-10(1)-1974 dated 14th April, 1974, and with effect from the aforesaid date the turnover in respect of the chemical fertilisers was made liable to tax at the point of sale by the manufacturer or importer thereof at the reduced rate of 3 per cent. According to the assessee it is this notification which covers his case. The revenue on the other hand relies upon Notification No. ST-II-332/X- 1012-1971 dated 15th November, 1971, whereby with effect from 15th November, 1971, the turnovers in respect of the goods specified in the schedule attached thereto were made liable to tax at the point of sale and at the rate specified in the schedule. Entry at serial No. 21 reads: "Chemicals of all kinds including fuel gases such as Burshane aod Indane but excluding soda-ash and caustic soda."
Now there can be no doubt that "magnesium sulphate" is a chemical which is a general category while chemical fertiliser is a specific category. It is a settled principle of interpretation that "an entry applying more specifically to a particular commodity should be preferred to a more general class which may cover other commodities also.... A doubt has to be resolved in favour of the assessee when the preponderating weight of considerations tilts the balance in his favour" : vide Girja Shanker Dubey v. Commissioner of Sales Tax [1968] 21 S.T.C. 127 at 134.
5. The question that falls for consideration thus is as to whether "magnesium sulphate" is a chemical fertiliser. The learned revising authority has referred to "Manures and Fertilisers" by K. S. Yawalkar in which it is stated that magnesium is a constituent of chlorophyll which is essential for all green plants. Magnesium is thus an essential plant nutrient and is recommended for use where there is a general loss of green colour in plants. "Magnesium sulphate" is commonly used to supply magnesium to the soil through fertiliser mixtures or foliar sprays.
6. In Encyclopaedia Britannica, Volume 14, 1972 edition, at page 584, one of the uses of "magnesium sulphate" is stated thus : "An increasing use for magnesium oxide and magnesium sulphate is as a fertiliser in Mg. deficient soils, giving increased yields specially with citrus fruits and potatoes." As regards its organic compound it has been stated that magnesium is a constituent of chlorophyll.
7. Apart from what has been stated above, as noted above, the revising authority has found that there was no material on record to indicate that the assessee sold "magnesium sulphate" either as a chemical or to those who required it as a chemical only and not as fertiliser. In view of the composition and use of magnesium sulphate and further the purpose for which it was sold by the assessee, its outturn was liable to be taxed treating it as a chemical fertiliser and not a chemical of all kinds.
8. The revision hence fails and is dismissed with costs to the assessee which are assessed at Rs. 200.