Mosquito Repellent 'Good Knight' Is An Insecticide, 4% VAT Applicable: Orissa High Court

The Orissa High Court has held that the mosquito repellent "Good Knight" sold by Godrej Sara Lee Ltd. is an insecticide.

The division bench of Chief Justice S. Muralidhar and Justice M.S. Raman has upheld the order of the tribunal and noted that the mosquito repellant is an insecticide within the meaning of that expression in Entry 30 of Part II of Schedule B and, therefore, a 4% tax is applicable.

The department has challenged the orders of the ACST and the Tribunal. The tribunal has held that Good Knight is in fact an insecticide, and 4% VAT is applicable.

The issue raised was whether the mosquito repellent "Good Knight" could be classified as "insecticide" under Entry 30 of Part II of Schedule B to the OVAT Act, attracting a 4% tax.

The department contended that it should be classified as "all other goods" in terms of Part III of Schedule B of the OVAT Act, amenable to tax at 12.5%.

The assessee, Godrej, submitted that it has a certificate of registration of insecticides under Section 9(3) of the Insecticides Act, 1968, for the manufacture of the insecticide transfluthrin, 1.6% w/w in liquid vaporizers.

The court noted that the literature accompanying the product, which has been enclosed with the present revision petition, reveals that one of the principal ingredients of the product is "transfluthrin 0.88% w/w liquid vaporizer." It is explained in the said literature that Transfluthrin 0.88% w/w Liquid "is an effective insecticide recommended for the control of adult mosquitoes in the household."

Case Title: State of Odisha Versus M/s. Godrej Sara Lee Ltd.

Case No: STREV No. 27 of 2021

Citation: 2023 LiveLaw (Ori) 22

Date: 15.02.2023

Counsel For Petitioner: S.K. Pradhan

Counsel For Respondent: R.P. Kar

Click Here To Read The Order