SOUTHERN GAS LTD Vs. STATE OF KARNATAKA

JUDGEMENT

(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.