ASSISTANT COMMERCIAL TAXES OFFICER WARD 1 JODHPUR CIRCLE D JODHPUR Vs. RAJASTHAN CHEMICAL CORPORATION

JUDGEMENT

(1.) THESE are two connected applications under section 15 (2) (b) of the Rajasthan Sales Tax Act, 1954 (hereinafter referred to as the Act ). The parties are the same, so also the points arising therein. Only the assessment periods are different. The period in case No. 42 of 1979 is from October 27, 1973, to November 13, 1974, and in case No. 43 of 1979 from November 8, 1972 to October 26, 1973.

(2.) THE assesse deals in 'neel' (ultramarine blue) and chamicals. THE assessee firm is a registered dealer under the Act. For the periods in question the assessing authority assessed the sale of 'neel' by the assessee to sales-tax at the rate of 12% by holding that it is a kind of pigment under item No. 18 of the rate notification dated March 9, 1970. Aggrieved by the assessing authority's order, the assessee filed appeals before the Deputy Commissioner (Appeals), Jodhpur, contending that 'neel' was not a pigment and, consequently, the sale thereof was not taxable at the rate of 12% but was taxable at the rate of 7% only under the residuary item. THE Deputy Commissioner by a common order dismissed both the appeals. THE assessee, then, filed revisions before the Board of Revenue for Rajasthan, which by a common order dated April 28,1978, allowed both the revisions and held that 'neel' was not a pigment and was, consequently, taxable at the rate of 7%.