Over 2 lakh Indian cases. Search powered by Google!

Case Details

THE COMMISSIONER TRADE TAX U.P. LKO. versus S/S CAMPHOR AND ALLIED PRODUCT LTD. C.B. GANJ BAREILLY

High Court of Judicature at Allahabad

Case Law Search

Indian Supreme Court Cases / Judgements / Legislation

Judgement


The Commissioner Trade Tax U.P. Lko. v. S/S Camphor And Allied Product Ltd. C.B. Ganj Bareilly - SALES/TRADE TAX REVISION DEFECTIVE No. 143 of 1997 [2006] RD-AH 20013 (24 November 2006)

 

This is an UNCERTIFIED copy for information/reference. For authentic copy please refer to certified copy only. In case of any mistake, please bring it to the notice of Joint Registrar(Copying).

HIGH COURT OF JUDICATURE OF ALLAHABAD

RESERVED

TRADE TAX REVISION NO.(143) OF 1997

AND

TRADE TAX REVISION NO.(144) OF 1997

AND

TRADE TAX REVISION NO.(145) OF 1997

AND

TRADE TAX REVISION NO.(539) OF 1998

AND

TRADE TAX REVISION NO.(638) OF 1998

AND

TRADE TAX REVISION NO.(1062) OF 1998

AND

TRADE TAX REVISION NO.(1064) OF 1998

AND

TRADE TAX REVISION NO.(1054) OF 1998

AND

TRADE TAX REVISION NO.(1063) OF 1998

AND

TRADE TAX REVISION NO.(1053) OF 1998

The Commissioner of Trade Tax, U.P., Lucknow.                                Applicant

Versus

S/S Camphor and Allied Products Ltd., Bareilly.                   .Opp.party

...............

Hon'ble Rajes Kumar, J.

Present ten revisions under Section 11 of U.P. Trade Tax Act (hereinafter referred to as "Act") are directed against the order of Tribunal relating to the assessment years, 1985-86, 1986-87, 1987-88, 1988-89,1989-90 and 1990-91 both under the U.P. Trade Tax Act and Central sales Tax Act.

In all the aforesaid revisions, the dispute relate to the rate of tax on the various items. In some of the years, the dispute also relate to the interest under section 8 (1) of the Act.

In revision Nos. (1062) of 1998, (1064) of 1998, (1054) of 1998, (1063) of 1998 and (1053) of 1998, the following common questions have been raised by way of amendment.

"Whether on the facts and in the circumstances of the case, the Trade  Tax Tribunal was legally justified to hold that campher oil, penbon oil, pine oil, citbenine oil were taxable as oil of all kinds?

Annul the demand of interest u/s 8 (1) of the U.P. Trade Tax Act?"

In revision Nos. (144) of 1997, (145) of 1997 and (143) of 1997, the following common question has been raised by way of amendment.

"Whether on the facts and in the circumstances of the case, the Trade Tax Tribunal was legally justified to hold that camphor oil, penbon oil, pine oil, citbenine oil were taxable as oil of all kinds?"

In Revision Nos. (638) of 1998 and (539) of 1998, following common questions have been raised.

"(i) Whether on the facts and in the circumstances of the case, the Trade Tax Tribunal was legally justified to hold that camphor oil, penbon oil, pine oil, citbenine oil were taxable as oil of all kinds?

(ii)Whether on the facts and in the circumstances of the case, the Trade Tax Tribunal was legally justified to hold that Sodium Acetate, Trihydrate, Sodium Acetate Solution, Capolite, C.P. Resin are chemicals/ unclassified items taxable at the rate of 8.8 percent.?"

I have perused the order of the Tribunal.

From the perusal of the order of the Tribunal, it appears that the dispute relates to the following items. The chart showing the year wise details of the disputed items are referred herein below:

Trade Tax Revision No. Year Item in dispute View of the Assessing Authority View of the Tribunal.

144/97 1985-86 (U.P) Capolyte CP Resin, Sodium Acetate Trihydrate and Sodium Acetate Solution. Paint and Varnish. Unclassified.

539/98 (i)1986-87 (U.P.)(ii) Pinetar Oil, Penwane Oil Campher Oil, & Citawin Oil.Sodium acetate Trihydrate and Capolyte CP Resin. Scent  & perfume.Paint and Varnish/Scent and Perfume. Oils of all kind. Notification No.3557, dated 31.07.85 @ 5%.Chemical. Unclassified (Neither Scent and Perfume nor Chemical.

638/98 1986-87 (Central) Pinetar Oil, Penwane Oil Campher Oil, & Citawin Oil.Sodium acetate Trihydrate and Capolyte CP Resin. Scent and perfume.Paint and Varnish/Scent and Perfume. Oils of all kind. Notification No.3557, dated 31.07.85 @ 5%.Chemical. Unclassified (Neither Scent and Perfume nor Chemical.

1062/98 1987-88 (U.P.) Capolyte C P Resin. Scent  And Perfume  Interest under section 8 (1). Unclassified deleted.

1064/98 1987-88 (Central) Capolyte C P Resin. Scent and Perfume Interest under section 8 (1) Unclassified deleted.

1054/98 1988-89 U.P.) Capolyte C P Resin. Scent and Perfume Unclassified.

1065/98 1988-89 (Central) Capolyte C P Resin. Scent and Perfume. Unclassified.

143/97 1989-90 (U.P.) Capolyte C P Resin. Scent and Perfume. Unclassified.

145/97 1989-90 (Central) Capolyte C P Resin. Scent and Perfume. Unclassified.

1053/98 1990-91 (U.P.) Capolyte C P Resin. Paint and Varsnih. Interest under section 8 (1). Unclassified. Deleted.

Apart from the dispute of classification of the items, no other dispute is involved and arises from the order of the Tribunal. Thus, dispute regarding the classification of the  following items only, requires adjudication.  

"Camphor Oil, Pinetar Oil, Penwane Oil, Citawin Oil, Capolyte C.P.Resin, Sodium Acetate Trihydrate, Sodium Acetate Solution and Sodium Acetate Trihydrate."

The aforesaid items have been described as follows by the Tribunal.

"Sodium Acetate Trihydrate.

It is a granular sodium salt by look. It is without any colour or white granular and is soluble in water as per technical literature. It is used for following purposes.

1.    In the tanning industry, as a washing salt.

2,    In printing and dyeing of textiles, as a mordant.

3.    In the manufacture of dry colours.

4.    In electroplating, as a reagent.

5.    In chemical synthesis and processing, as an intermediate.

6.    In analytical chemistry for eliminating effects of strong acids, as an                   important reagent.

7. In photography it is used with other salts to prevent discolouration of        

                  colour photographs.

8.    In chemical and pharmaceutical industries, as a buffering agent.

9.    In the manufacture of acetic acid, copper acetate, cinnamic acid etc.

10. For various steels in water and olefinic polymers, as a corrosion                   inhibitor.

Caspolyte CP Resins.

INTRODUCTION:

Capolyte CP Resins are thermoplastic polymers manufactured by copolymerization by bicyclic terpene hydrocarbons (like alpha pinene, beta pinene anddelta-3-carene) and phenol. In structure they are hard, friable and highly compatible. Capolyte CP Resins are light coloured and do not contain any resin or resin derivatives. Depending on the intended use, the range of softening points varies between 55 C and 135 C.

SOLUBILITY.

Capolyte CP Resins are soluble in all proportions, in petroleum solvents (aliphatic hydrocarbons), coal tar solvents (aromatic hydrocarbons), mineral oil, terpene hydrocarbons and in long chain alcohols, esters and ketenes. However, these resins are insoluble in lower alcohols, esters and ketenes. Additionally, capolyte CP Resins are soluble in paints and varnish oils, which are mainly of the fatty and glycerine types. These include linseed, soya, dehydrated castor, perilla and cottonseed oils.

APPLICATIONS:

For natural and synthetic rubber products such as tubes, tyres, fabric linings, shoes, tapes, hoses, moulded products, gaskets, rubber tiling and wire insulation, as excellent plasticizers and tackifiers.

1. In the manufacture of paints, varnishes, enamels, lacquers waterproofing and coatings, for concrete plaster and structural materials.

2. In the production of a variety of printing inks used for mimeographing, stamping, retrograveouring  and for printing on sacks and cartons.

3. In pressure sensitive adhesive tapes, surgical tapes, glass and cell phone adhesives, latex and plywood adhesives, and polystyrene and cement.

4. In the manufacture of hot melt coatings for folding cartons, corrugated containers, heat-sealable labels, book binding and multiwall paperbags.

5. In plain and corrugated paper board stiffening, hot melt coating of paper, quick drying paper sealing cements, paper waxing and paper insulating treatment.

SODIUM ACETATE SOLUTION.

Chemical classification:       Solution of sodium salt of acetic acid.

Appearance.                        Light brown solution at 40 C may crystallize

on cooling.

APPLICATIONS:

In leather and textile industries as a neutralizer and mordant.

In manufacture of sodium acetate.

Tribunal has not given any description or details about the Camphor Oil, Pine Oil and Citawin Oil. They have been treated as "Oils of all kind" without giving any description merely relying upon the decision of the earlier year. Copy of the order of the earlier year has not been produced by either of the party.

In this view of the matter, it may be appropriate that revision Nos. 539 of 1998 and 638 of 1998 relating to the assessment year 1986-87 both under the U.P. Trade Tax Act and Central Sales Tax Act for the aforesaid items may be sent back to the Tribunal to adjudicate the issue afresh.

So far as Sodium Acetate Trihydrate, Capolyte CP Resin and Sodium Acetate Solution are concerned, I do not find any error in the order of the Tribunal. In the revision petitions, it has been stated that these items are used in the manufacturing of paint and Varnish, nowhere, it has been stated that they are used as paint and varnish. Therefore, Tribunal is right in treating them as an unclassified items being not specified elsewhere.

So far as the question relating to the interest under section 8 (1) of the Act for the assessment years, 1987-88, 1989-90 and 1990-91 are concerned, I do not find any error in the order of the Tribunal. The question relating to the rate of tax was highly debatable and dealer has disputed the rate of tax bonafidely. Therefore, the demand of interest under section 8 (1) of the Act has been rightly set aside by the Tribunal.

In the result, revision nos. (143) of 1997, (144) of 1997, (145) of 1997 (1062) of 1998, (1064) of 1998, (1054) of 1998, (1063) of 1998, and (1053) of 1998 are dismissed and revision Nos. (539) of 1998 and (638) of 1998 are allowed in part. The matter is remanded back to the Tribunal to consider and examine the nature of Camphor Oil, Pinetar Oil, Penwane Oil and Citawin Oil and adjudicate the issue whether they are covered under the entry "Oils of all kind" or scent or perfume.

Dated.24.11.2006

VS.


Copyright

Reproduced in accordance with s52(q) of the Copyright Act 1957 (India) from judis.nic.in, indiacode.nic.in and other Indian High Court Websites

Advertisement

dwi Attorney | dui attorney | dwi | dui | austin attorney | san diego attorney | houston attorney | california attorney | washington attorney | minnesota attorney | dallas attorney | alaska attorney | los angeles attorney | dwi | dui | colorado attorney | new york attorney | new jersey attorney | san francisco attorney | seattle attorney | florida attorney | attorney | london lawyer | lawyer michigan | law firm |

Tip:
Double Click on any word for its dictionary meaning or to get reference material on it.