COMMISSIONER OF SALES TAX Vs. OLPHERTS PRIVATE LTD

JUDGEMENT

(1.) THE order in this reference shall also govern the disposal of Miscellaneous Civil Case No. 120 of 1982 (Commissioner of Sales Tax, Madhya Pradesh v. Olpherts Private Limited, Katni ).

(2.) THESE are two references under Section 44 (1) of the Madhya Pradesh General Sales Tax Act, 1958 (hereinafter referred to as the "act of 1958"), at the instance of the department in which the following question of law has been referred for decision of this Court:

(3.) THE material facts are these: The dealer/assessee is a company dealing in manufacture and sale of red oxide of iron. It was assessed to sales tax under the Act of 1958, for the two periods, namely, from 1st July, 1966, to 30th June, 1967, and 1st July, 1967, to 30th June, 1968. The sale of red oxide of iron was taxed at the rates specified under entry No. 25 of Part II of Schedule II. The contention of the dealer/assessee was that the red oxide of iron was a natural dry pigment. This contention was rejected by the assessing authority observing: According to him it is sale of natural dry pigment but the same is not true because it is observed that he imports P. G. red oxide in large quantities to the tune of Rs. 1,53,147. 16 and the same is mixed in white stone and sold as red oxide (hirmichi) which is used as dye for colouring cement and plaster. Hence is taxable vide entry 25, Part II, Schedule II.