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TMI Blog2013 (8) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner (Assessment) Sales Tax, Ghaziabad, relying upon the English Random Dictionary & Directory of Plastics, vide assessment order dated 23rd February, 1983, held that Methanol was an other name for Methyl Alcohol and as such was liable to tax @ 12% under Notification dated 29th September, 1972. Two first appeals were filed by the assessee, which were allowed in part. The Deputy Commissioner (Appeals) Sales Tax, Ghaziabad vide order dated 20th May, 1984 held, inter alia, that Methanol and Methyl Alcohol both were same chemical compound and, therefore, liable to tax as Methyl Alcohol @ 12%. The assessee filed two separate second appeals, one under the U.P. Sales Tax Act and the other under the Central Sales Tax Act, before the Sales Tax Tribunal, Ghaziabad. The Tribunal in view of the stand taken by the representative of the department held that Methanol, being different from Methyl Alcohol, was liable to tax @ 7% and not 12% vide order dated 6th February, 1990. The Commissioner, Sales Tax filed two Sales Tax Revision bearing No. 1117 of 1990 under the U.P. Sales Tax Act and Sales Tax Revision No. 1118 of 1990 under the Central Sales Tax Act before the High Court. The High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... behalf of the Department, Sri Kunwar Saxena, learned counsel for the Assessee raised a preliminary objection, namely: Section 6 of the Central Sales Tax Act creates the tax liability. The rate of tax on sales in the course of inter-state trade or commerce is provided under Section 8 of the said Act. Clause (b) of sub-section (2) of Section 8 provides for the rates to be applied in respect of goods other than declared goods. Since for the sale of Methanol inside the State of Uttar Pradesh, in the assessment year 1975-1976, tax has been determined at the rate of 7% plus 1%, as per the judgement of this Court dated 13th October, 1998 passed in Sales/Trade Tax Revision No. 1117 of 1990, the inter-state sales in respect thereof are liable to tax @ 10% only. The controversy as to whether Methanol was liable to tax at the rate of 7% or as Methyl Alcohol at the rate of 12% is therefore, irrelevant, for the assessment year 1975-76. He then submitted that even assuming without admitting that the rate applicable was 12%, the liability of tax on sales of the Methanol of value Rs. 5,200/- would work out to Rs. 624/- as against tax already @ 10% i.e. Rs. 520/- only. This would at best create ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter of nomenclature of Alcohols as follows: (1)Common System. In this system alcohols (R-OH) are named as Alkyl Alcohols. The alkyl group attached to the -OH group is named and 'alcohol' is added as a separate word. (2) Carbinol System. In this system alcohols are considered as derivatives of methyl alcohol which is called Carbinol. The alkyl group attached to the carbon carrying the -OH group are named in alphabtic order. Then suffice-carbinol is added. (3) IUPAC System. In this system alcohols are named as Alkanols. The IUPAC rules are: (a) Select the longest continuous carbon chain containing the -OH group. (b) Change the name of the alkane corresponding to this chain by dropping the ending- e and adding the suffix-ol. (c) Number the chain so as to give the carbon carrying the -OH group, the lowest possible number. The position of the -OH group is indicated by this number. (d) Indicate the positions of other subsituents or multiple bonds by numbers. From the Text Book on the subject, it may be safely inferred that Methanol and Methyl Alcohol are two names of one and the same commodity. The chemical formula of both the commodities, namely, Methanol and Methyl Alcohol i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods other than declared goods shall be calculated at the rate of 10% or at the rate applicable to the sale or purchase of such goods inside the appropriate State, whichever is higher." From simple reading of Section 8 (2) (b), it is clear that the goods, which are other than declared goods are liable to be taxed at the rate applicable to sale or purchase of such goods inside the appropriate State or at the rate of 10%, whichever is higher. Meaning thereby that if any rate has been fixed under the State Act for sale or purchase of goods inside the State of Uttar Pradesh and this rate is higher than 10%, then the higher rate would apply for inter-state sale of the goods concerned. The 'rate applicable' as per Section 8 (2) (b) is necessarily referable to the rate prescribed under the relevant provisions of the State Sales Tax Act and not with reference to the order of the Tribunal or of the High Court which, on the basis of evidence on record in a particular assessment year, may have held the goods to be unclassified. The rate applicable would necessarily mean the prescribed rate under the relevant notification. In the facts of the case, Notification No. ST-2-6203/X- 1012-1972 date ..... X X X X Extracts X X X X X X X X Extracts X X X X
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