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TMI Blog1993 (1) TMI 273X X X X Extracts X X X X X X X X Extracts X X X X ..... ectly decided? (3) Whether, in the facts and in the circumstances of the case, the Tribunal was not justified or right in law in appreciating the evidentiary value of all the documents produced and relied on by the applicant and in recording its findings thereon? At the time of hearing of this matter, Mr. R.D. Pathak, learned advocate appearing on behalf of the applicant, submitted that the first question requires to be reframed because before the Tribunal it was contended by the applicant that the product, namely, maleic resins would be covered by entry 9 of Schedule II, Part A and not that the said product would be covered under entry 61 of Schedule II, Part A to the Gujarat Sales Tax Act, 1969 (hereinafter referred to as "the Sales Tax Act"). The learned Assistant Government Pleader also agrees with the said submission. Hence, the first question referred by the Tribunal is reframed as under: "Whether, in the facts and circumstances of the case, it is established that the sales of maleic resins made by the applicant were covered under entry 9 of Schedule II, Part A or residuary entry 13 of Schedule III to the Gujarat Sales Tax Act, 1969?" The aforesaid reference arises out of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act. Entry 9 and entry 13 as they existed at the relevant time are as under: -------------------------------------------------------------------------------------------------------------------- Sr. Description of goods Rate of Rate of No. sales tax purchase tax --------------------------------------------------------------------------------------------------------------------- (1) (2) (3) (4) --------------------------------------------------------------------------------------------------------------------- 9 Dyes and chemicals other than those Four paise in Four paise in specified in any other entry in this or any the rupee. the rupee. other Schedule. 13 All goods other than those specified from Seven paise Three paise time to time in sections 18, 19A and 19B in the rupee. in the rupee. and in Schedules I and II and in the preceding entries. ---------------------------------------------------------------------------------------------------------------------- For the product "maleic resins", the applicant has produced on record annexure "5", which is a certificate by the Chief Chemist of Saurashtra Chemical Manufacturers' Association, wherein it is stated that maleic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Works Pvt. Ltd. [1975] 36 STC 112, identical entries under the Bombay Sales Tax Act, 1959, were considered by the Division Bench of this Court. In that case, the assessee sold "refined bentonite powder" and claimed that the goods sold were covered by entry 4 of Schedule C which pertained to dyes and chemicals other than those specified in other entries of Schedule C or of those in other Schedules. The Sales Tax Officer however, negatived this contention and held that it fell under residuary entry No. 22 of Schedule E. The Tribunal reversed the said order by holding 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 Bombay Sales Tax Act. Before this Court, on behalf of the State, it was contended that all chemicals cannot be taxed under entry 4, as the meaning of the word "chemicals" would take its colour from the preceding word "dyes" described in the said entry. The court negatived the said contention by holding that the word "chemicals" should not by any stretch of imagination in this particular entry be said to take a limited meaning from the preceding word "dye-stuff'. The court held, "entry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als", which would obviously represent a very wide category of articles. For this purpose, the Division Bench posed a question as to whether if a consumer of the articles which are disputed in that case goes to the market and asks for a "chemical" from a dealer of those articles, would he be supplied any of those articles. The court referred to Encyclopaedia Britannica wherein under the caption "chemical industry" three general classes of chemical products are discussed. They are as under: "(1) Basic chemicals such as acids, alkalies, salts and organic chemicals; (2) Chemical products to be used in further manufacture such as man-made fibres, plastic materials, crude animal and vegetable oils, dry colours and pigments and (3) Finished chemical products to be used for ultimate consumption, such as drugs, cosmetics and soaps, or to be used as materials or supplies in other industries, such as paints, fertilizers and explosives." The Division Bench thereafter negatived the contention of the assessee that all the end-products in the manufacture of which chemicals are used would be covered by entry 4 of Schedule C. It was held that if that contention was accepted then it would follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned advocate Mr. Pathak for the applicant that the applicant's product is an end-product because admittedly it is used as a raw material in the manufacture of varnishes and other items as stated above. Mr. Pathak, learned advocate for the applicant, further contended that in trade maleic resin is not known as chemical. It is known as end-product which can be used in the manufacture of varnish. He, therefore submitted that, to an article referred to in any taxing statute popular meaning should be assigned and technical or scientific meaning should not be given. For this purpose, he relied upon the certificates produced by the applicant before the Tribunal to establish that maleic resins are not known in the trade as chemicals. For the proposition that, while interpreting an entry in the Sales Tax Act, the popular meaning should be assigned and not technical or scientific, he referred to the decision of the Supreme Court in the case of Commissioner of Sales Tax v. Jaswant Singh Charan Singh [1967] 19 STC 469. In that case, the Supreme Court interpreted entry 1 of Part III of Schedule II to the Madhya Pradesh General Sales Tax Act, 1958, which provided for coal including coke in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... age is to be considered in its popular sense; (b) Popular sense meaning would be that meaning which people conversant with the subject-matter with which the statute is dealing would attribute to it. For chemical products or chemicals, meaning which is known to the concerned persons dealing in chemical products or chemicals, is required to be assigned. (c) If the word is of technical or scientific character, then it should be considered in technical or scientific manner. Admittedly, maleic resins produced by the applicant are synthetic resins. It is a chemical product which is an essential raw material for manufacturing printing inks, varnishes, paper polishing, paints, etc. It is a mixture of ester gum, fumaric esters of di-ethylene glycol and pento erythrital, as certified by the Chief Chemist of the Saurashtra Chemical Manufacturers' Association. Further, the question of interpreting an entry and giving its meaning in the popular sense would arise only if the entry contains the language which is capable of being considered in the popular sense. This question is also considered by the Supreme Court in the case of Akbar Badrudin Jiwani v. Collector of Customs AIR 1990 SC 1579. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise 'synthetic polymer'. See also note under gum natural.". Thereafter, the court considered the meaning of polyester and observed as under: "A polyester is a high polymer and includes a variety of materials having properties ranging from hard and brittle to soft and elastic. Addition of such modifying agents as filler, collorants, etc., yields an almost infinite number of products collectively called plastics. High polymers are the primary constituents of synthetic fibres, coating materials (paints and varnishes), adhesives, sealants, etc. (See 'polymer high' in Condensed Chemical Dictionary). A polymer has been described as a compound formed by the reaction of simple molecules having functional groups that permit their combination to proceed to high molecular weights under suitable conditions and polymers may be formed by polymerization (addition polymer) or polycondensation (condensation polymers). Condensation is a chemical reaction in which two or more molecules combine, with the separation of water or some other simple substance. If a polymer is formed, the process is called polycondensation. (See Condensed Chemical Dictionary)." The court held that polymer chips would be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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