ECOF DETERGENTS PRIVATE LIMITED Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) .

(2.) PETITIONERS in W.P. Nos. 7299, 7300 to 7303 of 2000 Scientific Compounds and Process Pvt. Ltd., manufacture and market under the brand name 'sabena" a powder which contains a detergent Alkyl Benzene sulphonic Acid to the extent of 2.01 per cent of the products 8.03 per cent moisture and volatile matters and 82.69 per cent matter insoluble in water. The additives added to the detergent are mainly abrasives. They are water insoluble such as talc, silica feldspar, chalk, quartz and sand. This mixture is sold in powder form and is used primarily for cleansing utensils. It is a cleansing material. This product is hand made.

(3.) EVEN before the word "detergent" was used in the entry, the powder manufactured by the assessee being undisputedly a powder used for cleansing, was regarded as 'soap" by the assessing authorities and, after the word "detergent" came to be included in the entry, was regarded as detergent powder, "continuously from August 1, 1968 till 1991 for a period of twenty three years. In this period the Commissioner has also issued clarifications instructing his subordinates to assess the product manufactured by the assessee as a detergent powder". It was only in the year 1993 that the Commissioner, for the first time, took the stand that the cleansing powder manufactured by the assessee is not a soap or detergent and that it has to be taxed under section 3(1) of the Act and later under the residuary entry.