COMMERCIAL TAXES OFFICER Vs. M R F LIMITED

JUDGEMENT

(1.) THE question that arises for consideration by this Court in the present revision petitions filed by the Revenue is as to whether vulcanising solution used by the respondent -assessee in tyre retreading work is a synthetic adhesive taxable at the rate of 16 per cent or at general rate of 10 per cent which was charged and paid by the respondent -assessee.

(2.) THE assessing authority imposed difference tax of six per cent on the sale value of such vulcanising solution holding the same to be taxable at the rate of 16 per cent purportedly under entry No. 91 of Notification, S. No. 713, S.O. No. 399 dated March 27, 1995 which entry reads as under: 91. Paints, pigments, enamels, cement based water colours, dry 16%' distempers, oil -based distempers, emulsion paints including acrylic and plastic emulsion paints, lacquers including cellulose lacquers, varnishes, all types of synthetic adheshes, all types of polish (other than boot -polish), turpentine oil, white oil, double boiled linseed oil, thinners, all kinds of paint removers and all kinds of wall papers.

(3.) MR . R.B. Mathur, learned Standing Counsel for the Revenue, urged that undoubtedly the vulcanising solution was used by the respondent -assessee for sticking together of two sheets of rubber for retreading of tyres and the compound of the vulcanising solution comprised of natural rubber, polymer, rubber compound and solvent and, therefore, it was nothing but synthetic adhesive used for sticking together of sheets of rubber and was, therefore, taxable at the rate of 16 per cent. He, therefore, assailed the orders passed by the two appellate authorities below and submitted that the revision petitions deserve to be allowed and the order of the assessing authority deserved to be restored. He submitted that it is well -settled that common parlance test is the acid test for interpreting the taxability of a particular commodity and how a particular commodity is understood in the trade parlance by the persons concerned with that particular trade or business is the relevant factor. Relying on certain judgments of the apex court for this well -settled proposition of law of applying the common parlance test, he urged for allowing the revision petitions.