R.S. Chauhan, J. - (1.) The Revenue is aggrieved by the judgment dated 31.05.2002 passed by the Rajasthan Tax Board, Ajmer, whereby the learned Board has upheld the order dated 01.05.1999 passed by the learned Divisional Commissioner (Appeals), Commercial Taxes, Udaipur wherein the learned Divisional Commissioner had set aside the assessment order dated 02.05.1998.
(2.) The brief facts of the case are that the assessee, M/s. Prakash Sales Corporation, Udaipur carries on the business of tyres and tubes. Dealing with the assessment year 1994-95, for the period from 01.04.1994 to 31.03.1995, the assessment order was passed by the assessing authority under Section 13 of the Rajasthan Sales Tax Act ('the Act', for short). As per the return submitted by the assessee, they have assessed themselves by paying tax @ 10% per annum on patch and chemical solution. However, according to the Revenue such a patch and solution were subject to be taxed @ 15% per annum as the patch and solution fall within the definition of word "adhesive". Therefore, the assessee had submitted incorrect return. A show cause notice was issued to the assessee. In reply to the show cause notice, the assessee had asserted that the patch and solution were used for repairing tyre and tube. Therefore, they are not "adhesive". But, the patch and solution are a kind of vulcanized rubber and fluid. Therefore, they cannot be taxed @ 15% per annum. However, the assessing authority disagreed with the plea raised by the assessee. Vide assessment order dated 02.05.1998, it collected tax and interest to the tune of Rs. 1,32,015/- from the assessee.
(3.) Since the assessee was aggrieved by the said order, it filed first appeal before the learned appellate authority. Vide judgment dated 01.05.1999, the learned appellate authority allowed the appeal. According to the learned appellate authority, the patches are rectangle and oval in shape and the solution used in mending the tyres and tubes cannot be termed as an adhesive. Therefore, they do not fall within the meaning of word "adhesive". Instead, the patch is vulcanized solution and as a rubber, they cannot be taxed @ 15% per annum. Since, the Revenue was aggrieved by the said order, it filed a second appeal before the learned Board. However, vide judgment dated 31.05.2002 the learned Board has upheld the order dated 01.05.1999 passed by the learned appellate authority. Hence, this petition before this Court.;