QUALOTY CHEMICALS Vs. STATE OF GUJARAT

JUDGEMENT

(1.) The Gujarat Sales Tax Tribunal has referred, under Section 69 of the Gujarat Sales Tax Act, 1969, the following questions for our decision :-

(2.) At the time of hearing of this matter, Mr. R.,D. Pathak, learned advocate appearing on behalf of the applicant, submitted that the first question requires to be rcframed because before the Tribunal it was contended by the applicant that the product namely Maleic Resins would be covered by Entry 9 of Schedule II Part A and not that the said product would be covered under Entry 61 of Schedule II pan A to the Gujarat Sales Tax Act, 1969 (hereinafter referred to as "the Sales Tax Act"). The learned Assistant Government Pleader also agrees with the said submission. Hence, the first question referred by the Tribunal is reframed as under:

(3.) The aforesaid reference arises out of the decision rendered by the Tribunal in Second Appeal No. 3 of 1982 decided on 29th July 1982. That appeal was filed by the present applicant against the order dated 19lh June 1980 passed by the Sales Tax Officer (4), Division-1, Bhavnagar, in respect of the assessment period from 1 st May 1976 to 30th April 1977. Before the Tribunal, it was contended that Maleic Resins, which arc used as raw-materials in the manufacture of Varnish, would be covered by the residuary Entry 13 of Schedule III and not by Entry 9 of Schedule II, Part A, to the Sales Tax Act. It was also contended that in common parlance and in the trade Maleic Resins are not known as chemicals. For this purpose, the applicant has relied upon various opinions which were produced on record before the Tribunal. Before the Tribunal, the applicant had also relied upon the determination order passed by the Deputy Commissioner of Sales Tax in the case of M/s. Synthetic and Polymer Industries of Ahmcdabad lor substantiating its contention that Maleic Resins would not be covered by Entry 9. The Tribunal rejected the contentions raised by the applicant and relied upon its earlier decision in the case of Mis Hoechst Dyes and Chemicals Ltd vs. State of Gujarat (8 G.S.T.D. 294) wherein the Tribunal had held that synthetic resin groups are chemicals covered by Entry pertaining 10 "Dyes and Chemicals". The Tribunal, therefore, allowed the second appeal partly by confirming the finding of the Sales Tax Officer that Maleic Resins are chemicals within the meaning of Entry 9 of Schedule II. The Tribunal, however, waived the penalty imposed under Section 45(6) of the Sales Tax Act.