Decided on April 24,1998



M.Ramakrishna, Chairman - (1.) THIS appeal is preferred by the appellant aggrieved against the orders passed by the learned Appellate Deputy Commissioner(CT), Guntur passed in appeal No. 49/95 -96 dated 11.3.1997, whereby the appeal preferred by the appellant disputing the levy of tax of Rs. 52,580/ - representing the sales of Lime determined by the Deputy Commercial Tax Officer, Piduguralla, for the assessment year 1992 -93 in GI No. 1892/92 -93 dated 11.12.1993 was confirmed and thereby dismissed the appeal preferred by the appellant. The only question involved in this appeal is as to whether the appellant who is a dealer in lime who purchased lime stone and heated and grinded material and burnt it in the kiln and derived lime powder which was sold, whether the said product thus derived in the process is liable to tax or not.
(2.) REITERATING the contentions urged by the appellant before the lower authorities, it is contended by the learned Authorised Representative that the material lime derived by burning lime stone with the help of coal does not attract any tax, because according to his submission, the lime stone and lime powder are one and the same and hence lime powder is nothing but lime stone and that they heat the Lime stone by burning the same with the help of coal, and the heated lime stone will be formed into powder shape by nature itself and the heated limestone will be kept in open place, where it will become into powdered form as it was kept in open air. Hence the appellant will not use any processes to grind the lime stone to make it into powdered form. Reliance is placed on the decision reported in : 48 STC 315 in the case of State of Tamil Nadu v. M. Natarajan, wherein the Tamil Nadu Court held that 'conversion of white ash into sacred ash, no new commodity resulted and no purchase tax attracted'. It is also his submission that coffee seeds will be roasted by heating the seed and after heating the roasted seed will be grinded for making coffee powder and that coffee powder is nothing but coffee seed and it was held that there is no manufacturing processes involved. Similarly, it is his submission, that in the case of chillies powder also the chillies powder obtained from chillies and turmeric powder from turmeric are not liable to tax again. On the other hand, the learned State Representative has relied upon the orders passed by the lower authorities.
(3.) THE point for consideration is as to whether lime stone and lime powder are one and the same or whether they are different commodities which involved in manufacturing processes?;

Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.