COMMISSIONER OF COMMERCIAL TAX Vs. STANDARD PAINT HOUSE

JUDGEMENT

(1.) BOARD of Revenue has referred the following two questions, stated to be questions of law arising out of its order dated 19th July, 1996 for opinion of this Court :

(2.) IT appears that assessee, a dealer in paints and chemicals, claimed to be an unregistered dealer from April 1, 1989 to August 25, 1989 and paid tax at 12 per cent for sale of "thinner". This was, however, reversed by the assessing authority imposing sales tax at 16 per cent by falling back upon entry No. 20, Part II, Schedule II of the M. P. General Sales Tax Act, 1958. A penalty of Rs. 19,831 was also imposed, for filing of late return by the assessee.

(3.) AN appeal was taken against this by the assessee who claimed that he had imported and sold chemical which could be used as a thinner and which was taxable at 12 per cent. He failed and took further appeal to the Board of Revenue and succeeded there. The Board found that the assessee had sold mineral turpentine oil which was distinct from turpentine oil and was not covered by entry No. 20, Part II, Schedule II and would fall in residuary entry as per the judgment of jurisdictional High Court in Commissioner of Sales Tax, M. P. v. Burmah Shell Oil Storage and Distributing Co. of India [1981] 48 STC 54 (MP) ; [1981] 14 VKN 373.