LAWS(KAR)-1975-6-14

STATE OF MYSORE Vs. U M GULAM

Decided On June 03, 1975
STATE OF MYSORE Appellant
V/S
U.M.GULAM Respondents

JUDGEMENT

(1.) These-are revision petitions preferred by the State under S.23(1) of the Karnataka Sales Tax Act, 1957 (hereinafter called the 'Act) against the orders of the Sales Tax Appellate Tribunal made in STAs. 5, 4, 3, 2 of 1972 and No.325 of 1973.

(2.) The respondents are 'dealers' in 'Lime' manufactured from sea-shell. Sea-shell are baked in mud kilns and the baked product which is lime is sold by the dealers to coffee and other plantations, apparently for application to the soil and or for use in the preparation of "Boredeaux mixture' which is a fungicide composed of capper-sulphate, lime and water. The Assessing Authority levied tax on the turnover of the dealers at 3 per cent under S.5(1) of the Act on the assumption that lime sold by the dealers does no fall within any of the items of the Second Schedule to the Act. The dealers did not prefer any appeal against the said orders of assessment. The Deputy Commr of Commercial Taxes, Mangalore (in assessment of the respondents in STRPs. 5,7,8 and 9 of 1974) and the Asst Commr of Commercial Taxes, Mangalore (in assessment of the respondent in STEP. 18/1974), initiated proceedings under S.21 of the Act to revise the assessment orders by charging the turnover of the dealers relating to sale of lime at the higher rate prescribed for 'Heavy Chemicals' under Item 79 of the Second Schedule to the Act. The dealers contended, inter alia, that lime prepared from sea-shell does not fall within Item 79 and that the goods in question fall under Item 48, viz, chemical fertilisers. In the alternative, they contended that lime does not fall within Item 79. The Revisional Authorities rejected both the contentions of the dealers and passed orders by charging the respective turnover of the dealers at the higher rate of tax prescribed for the goods falling under Item 79 of the Second Schedule to the Act, taking the view that lime is a 'Heavy Chemical'. Against the said orders, the dealers preferred appeals before the Sales Tax Appellate Tribunal, Bangalore The Tribunal, after referring to the meaning of the term 'Heavy Chemical' found in the dictionaries observed that there is no material placed to show that lime of the nature dealt with by the dealers possessed the characteristics of 'Heavy Chemicals' and on that view reversed the order of the Revisional Authorities and restored the order of the Assessing Authorities. Aggrieved by the decision of the Tribunal, the State has preferred the above revision petitions.

(3.) It was urged by Sri Chandrakantaraj Urs. learned Counsel for the State that it is undisputed that 'Lime' is a chemical and that it is also undisputed that it is produced in bulk at cheap rates and that being the case, 'Lime' falls within the meaning of 'Heavy Chemicals' under Item 79 of the Second Schedule to the Act The question for decision in these revision petitions is whether 'Lime' manufactured from sea-shell in this country falls within the meaning of Item 79 of the Second Schedule to the Act which reads : Goods on the sale of which a single point tax is leviable on the first or earliest of successive dealers in the State under S.5(3) (a) .