VEERARAJENDRA CORPORATION Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) The common question raised in these two revision petitions is whether trichloroethylene is a

(2.) The petitioner is a partnership firm engaged in the business of buying and selling the chemicals including the trichloroethylene manufactured by M/s. Dhranghadhara Chemical Works, Bombay. For the years 1974-75 and 1975-76, the assessing officer levied tax on the turnover of the petitioner in respect of sale of trichloroethylene at the rate prescribed under section 5(1) of the "Act" treating that chemical as a solvent falling under "other chemicals" and not as a "heavy chemical" falling under item No.79 of the Second Schedule. Item No. 79, as it then stood reads :

(3.) The "Act" came into force in 1957. Up to the year 1977, there was no attempt on the part of the department to classify trichloroethylene as heavy chemical for the purpose of taxing at the rate prescribed under item No. 79. In the Commercial Tax Bulletin for the year ending June, 1977, the department has listed as many as 72 articles as heavy chemicals falling under item No. 79, but trichloroethylene was not included in that list. It was only in the next year bulletin for the quarter ending June, 1978, trichloroethylene came to be included in the list of heavy chemicals.