COMMISSIONER OF SALES TAX Vs. POLYCHEM LTD

JUDGEMENT

(1.) This is a reference under section 61(1) of the Bombay Sales Tax Act, 1959 (hereinafter referred to as "the said Act"). The reference has been made at the instance of the Commissioner of Sales Tax, and the question referred to us for our determination is as follows :

(2.) The facts giving rise to this reference are as follows : The respondents are a public limited company and manufacture products known in the trade as "styron" (plastic moulding powder) and polynite sheets. On 21st September, 1967, the respondents filed two applications under section 52 of the said Act before the applicant requesting him to determine the rate of tax applicable to the sales of the aforesaid two products, viz., styron and polynite sheets. The respondents contended that these articles were not chargeable at the rates prescribed under entry 19A of Schedule E but were chargeable under the residuary entry, viz., entry 22 of Schedule E to the said Act. The applicant, the Commissioner of Sales Tax, by his order held that both these articles were goods made from plastics and were taxable under entry 19A of Schedule E to the said Act. The respondents preferred and appeal against this order to the Sales Tax Tribunal. The Tribunal came to the conclusion that both the aforesaid products were plastics and not goods made from plastics and, in view of this, the Tribunal held that these goods were not covered by entry 19A of Schedule E but would fall within the residuary entry 22 of the said schedule. The department has accepted the view of the Tribunal regarding the product, styron, which consists of granules, but has sought to dispute the correctness of the view of the Tribunal regarding the polynite sheets by way of the question raised before us.

(3.) Before going into the arguments canvassed in the matter, it may not be out of place to take notice of the relevant entries in Schedule E to the said Act. Entry 19A of Schedule E, as it stood at the relevant time, read thus :