PANKAJ AGENCIES Vs. STATE OF KERALA

JUDGEMENT

(1.) IDENTICAL questions of law arise for consideration in these two cases. The revisions are filed by an assessee under the Kerala general Sales Tax Act (in short, the Act ). They are filed against a common order dated 8th of December, 1987, rendered by the Sales Tax Appellate Tribunal in Sales Tax Appeals 530 and 531 of 1984, for the assessment years 1982-83 and 1983-84. The assessments relate to the period April to November for the year 1983-84, and the assessment for the whole year, 1982-83. Both are provisional assessments. "nirma" is a widely marketed washing powder. The petitioners (assessee) is engaged in the sale of "nirma". The sole controversy that arises for consideration is whether "nirma" can be taxed under item 82 of the First Schedule to the Act, or will it attract liability only at the general rate under S. 5 of the Act?

(2.) ITEM 82 of the First Schedule to the Act provides as follows: "goods in respect of which single point tax is leviable under sub-section (1) or sub-section (2) of S. S. The assessee's counsel in a very persuasive argument contended that there is a difference between "washing powder" and "detergent powder", and that 'nirma' marketed by the revision petitioner (assessee) is only a washing powder, and not a detergent powder. The composition of the goods (Nirma) as could be gleaned from the chemical analysis report filed before the A. A. G, and adverted to in Para. 3 of the Tribunal's, order, shows that' Nirma' will not fall under any grade specified in I. S. Specification-I. S. 4955-1982 (Second Revision) for household laundry detergent powders. Nearly 70% of the product is comprised of sodium carbonate, otherwise known as 'soda ash'. This aspect was highlighted to contend that there is a difference between 'washing powder' and ' detergent powder' and ' Nirma' is only a washing powder, which does not conform to I. S. I. standard. In this perspective the plea was that'nirma', the washing powder, marketed by the revision petitioner, will not fall under item 82 of the First Schedule to the act.

(3.) ON a review of the dictionary meaning, it is fairly clear that when the words "detergent powder" are used in entry 82 of the First Schedule to the Act, all that is meant is: "it is a powder, which cleanses or is used for washing purposes. " In substance, it is a powder used for removing dirt, etc. other than a soap for washing purposes. In that perspective, we have no doubt that'nirma' the washing powder will be taken in by the relevant Entry 82 of the First Schedule to the Act. The fact that the goods are marketed by stating that'it is a washing powder' cannot determine the real nature of the goods. The commodity, "washing powder" is really, and in substance, a "detergent". The Appellate Tribunal was justified in holding so.