COMMISSIONER SALES TAX Vs. SAHARANPUR CHEMICAL INDUSTRIES

JUDGEMENT

(1.) This is the Commissioner's application in revision under Section 11(1) of the U. P. Sales Tax Act and the question involved is as to whether magnesium sulphate is taxable as chemical fertiliser as claimed by the assessee or as chemical as claimed by the revenue.

(2.) The assessment year is 1974-75. The respondent-assessee carried on his business in the manufacture and sale of "magnesium sulphate" and had both intra and inter State sales. The book version and the disclosed turnover were accepted by the assessing officer but he taxed the entire turnover of sales treating "magnesium sulphate" as a chemical and not a chemical fertiliser.

(3.) The assessee appealed and contended that "magnesium sulphate" was chemical fertiliser and from 15th April, 1974, its outturn was liable to be taxed at 3 per cent. The appellate authority did not accept that contention and the assessee again agitated this question in revision before the Additional Judge (Revisions), Sales Tax, Saharanpur. The learned revising authority has accepted the assessee's contention and has held that "magnesium sulphate" is a chemical fertiliser and its outturn is taxable as such even though it may be treated as a chemical also. Another finding given by the revising authority is that there was no material on record to suggest that the assessee had sold "magnesium sulphate" either as a chemical or to those persons who required it as chemical and not as fertiliser. Being aggrieved the Commissioner has filed the present revision.