Case Law Details
Sree Durga Distributors Vs State of Karnataka (Supreme Court Judgment)
In the civil appeal of Sree Durga Distributors vs. State of Karnataka, a fundamental question arose: whether the sale of ‘dog feed’ and ‘cat feed’ should attract a Nil rate of duty under Entry 5 of the First Schedule of the Karnataka Value Added Tax Act, 2003 (referred to as “the Act”). This appeal was based on the insertion of Entry 5, which took effect on June 7, 2005. The specific issue was whether these pet food products could be considered as “animal feed” under this entry.
Entry 5 of the Karnataka VAT Act: Entry 5 in the First Schedule of the Act encompasses “Animal feed and feed supplements,” including various types of feed sold as poultry feed, cattle feed, pig feed, fish feed, fish meal, prawn feed, shrimp feed, feed supplements, and mineral mixture concentrates intended for use as feed supplements, including de-oiled cake and wheat bran.
Appellant’s Argument: The appellant argued that ‘dog feed’ and ‘cat feed’ fall within the category of “animal feed” as specified in Entry 5. They contended that Entry 5 distinguishes between ‘animal feed’ and ‘feed supplements,’ which should be read as separate and not combined. According to the appellant, the term ‘namely’ following ‘feed supplements’ in Entry 5 indicates that ‘feed supplements’ should be limited to specific items like poultry feed, cattle feed, pig feed, fish feed, fish meal, prawn feed, and shrimp feed. In their view, ‘animal feed’ and ‘feed supplements’ are distinct, and each part of Entry 5 can operate independently.
Supreme Court’s Evaluation: The Supreme Court disagreed with the appellant’s interpretation. The Court observed that Entry 5 categorizes “animal feed and feed supplements” as a single category. The inclusion of a comma and the word ‘namely’ after “animal feed and feed supplements” indicates that they form a single class of products. The list provided after ‘namely’ is exhaustive, and it does not include ‘dog feed’ or ‘cat feed.’
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