STATE OF GUJARAT Vs. JAYANT CHEMICAL WORKS PVT LTD

JUDGEMENT

(1.) THE question referred to us for our opinion in this reference is as under : " Whether, on the facts and in the circumstances of the case, refined bentonite powder is covered by entry 4 of Schedule C to the Bombay Sales Tax Act, 1959, or is covered by residuary entry No. 22 of Schedule E to the said Act ?"

(2.) THE opponent-company is a registered dealer manufacturing and selling chemicals and medicines. During the period of assessment for S. Y. 2019, the opponent-company sold refined bentonite powder and claimed that the material sold was covered by entry 4 of Schedule C to the aforesaid Act. THE Sales Tax Officer, however, negatived this contention and held that it fell under entry 22 of Schedule E. THE matter was taken in appeal by the opponent-company, wherein the order of the Sales Tax Officer was confirmed. THE opponent-company, therefore, took the matter in second appeal before the Sales Tax Tribunal. THE Tribunal after considering the nature of the description of the product known as bentonite powder as given in the British Pharmaceutical Codex, 1949, and having regard to its earlier decision in Anil Starch Product Ltd. v. State of Gujarat, in Appeal No. 10 of 1967 decided on 26th April, 1968, reached the conclusion that the substance in question had a chemical effect and was, therefore, a chemical liable to be taxed under entry 4 of Schedule C to the Act. At the instance of the State this reference has been made to this court.

(3.) PRIOR to this amendment, i. e. , for the period on and from 19th to 26th December, 1961, the entry read as under : ---------------------------------------------------------------------- 1 2 3 4 5 ---------------------------------------------------------------------- "22. All goods other Three naye Do. ** (2) Column 5 together than those paise in the with heading specified from rupee. 'rate of purchase time to time in tax' and entry Schedules A, B, thereunder were C and D and in deleted - vide the preceding Guj. Act 11 of entries. 1961, section 20, with effect from 19th April,1961. "