SOLVENTS TRADING COMPANY CHENNAI Vs. STATE OF TAMILNADU

JUDGEMENT

(1.) In all these Reviews the common question that arise for consideration is as to "whether "dyes" used for leather finishing falls under entry 49 of Part C or entry 16(iii) of Part E." If it falls under entry 49 of Part C then the rate of tax to be applied is 5% while if it falls under entry 16(iii) of Part E, the rate of tax would be 12%.

(2.) We refer to the case particulars concerned in T.C.(R) No. 547/2006. By order of assessment dated 28.2.1995 for the assessment year 1993-94 the assessing authority took the view as under in para 5.

(3.) Aggrieved by the order of the assessing authority, the assessee went before the Appellate Assistant Commissioner. The Appellate Assistant Commissioner by his order dated 4.12.1999 also affirmed the order of the assessing authority by holding that entry 16(iii) is a specific entry while entry 49 is a general entry and therefore entry 16(iii) will be applicable to the "dyes" used in leather and the tax will have to be calculated at the rate of 12%. On further appeal by the assessee before the Sales Tax Appellate Tribunal, the Tribunal also took the view that the "dyes" which are used as "pigments" for leather finishing, is liabile to be taxed at 12% under entry 16(iii). The petitioner has therefore come forward with this revision challenging the above orders of the lower authorities as confirmed by the Tribunal.