STATE OF TAMIL NADU Vs. MUTHU AGENCIES

JUDGEMENT

(1.) THE above batch of cases are dealt with in common since they deal with a common and identical question as to whether "ultramarine blue" will fall under item 110 or 138 of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959, hereinafter referred to as "the Act."

(2.) T.C. No. 1108 of 1981. - The Revenue is the petitioner before this Court. The assessee is a dealer in dyes and chemicals. For the assessment year 1978-79, the Joint Commercial Tax Officer, Madurai, while finalising the assessment, disallowed their claim in respect of (a) exemption of a turnover of Rs. 24, 830.41 as second sales, and (b) dispute of rate of tax on a turnover of Rs. 17, 35, 113.26, being the sale of "ultramarine blue" to be 8 per cent instead of ten per cent. In respect of the second of the claim, the assessing authority held the sale of "ultramarine blue" to fall under item 110 of the First Schedule treating the same to be "colour". On appeal, the appellate authority, though held "ultramarine blue" to fall under item 110, was of the view that it was pigment. Before the Tribunal, it was held to be a chemical falling under item 138 of the First Schedule. Hence, the revision by the State.

(3.) T.C. No. 248 of 1989. - The Revenue has filed this revision. The assessee is a dealer in "ultramarine blue". For the assessment year 1983-84, the sales have been subjected to 10 per cent tax apparently treating them to fall under item 110 of the First Schedule having regard to the fact that the dealers themselves have collected tax at 10 per cent. On appeal, the appellate authority sustained the levy holding it to be a "pigment" only and, therefore, not falling under item 138. The Tribunal, on further appeal, held the same to fall neither under item 110 nor under item 138, but to be subject to levy at multi-point under section 3(1) of the Act. (5 per cent at that point of time). Hence, the revision by the State.