TMI Blog1996 (9) TMI 566X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 20(2) of the Act, revised the order of assessment after notice to the petitioner-assessee and assessed the same at the rate of 13 per cent taking the view that it is taxable under entry No. 2 of the First Schedule to the Act. The plea of the assessee that the turnover relates to gas which falls under entry No. 118 was not accepted by the revisional authority. The order of revision dated July 8, 1988 was assailed before the Sales Tax Appellate Tribunal by the petitionerassessee. The Tribunal upheld the order of the Deputy Commissioner that the disputed turnover was taxable under item No. 2 to the First Schedule at the rate of 13 per cent; however, it also held that where the goods in question were sold for purposes other than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner deals in products called Aegron 11, the chemical name of which is (Trichloromonofluoromethane) CFCI(3); Aegron 12, the chemical name of which is (Dichlorodifluoromethane) CCI2F2; and Aegron 22, the chemical name of which is "Monochlorodifluoromethane" CHCIF2. These products are gases. In the brochure said to have been issued by the Aegis Chemical Industries Ltd. the properties of these gases are noted as follows: Uses-the gases can be put to are used noted as follows: Aegron: 11. Used in industrial and commercial air-conditioning and refrigerating systems employing centrifugal type compressors, department stores, buildings and theatres employ air-conditioning systems with Aegron 11. It is used as a flushing agent and f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urposes in connection with refrigeration, cooling and air-conditioning systems. Indeed, these products are called "refrigerants". It may also be noticed that Aegron 11 is used in production of superior polyurethane foam and Aegron 12 is used in Aerosol preparations. Further, the Tribunal has noted that it was brought to its notice that major part of the gases were sold to I.D.P., H.A.L., Defence Labs, State Electricity Board, Railways, etc. We shall now turn to the relevant entries which are in question: "2. Refrigerations, air-conditioning plants, water-coolers, room-coolers and parts and accessories thereof, including refrigeration materials, like polystyrene foam. At the point of first sale in the State. 13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be used for some other purposes will nonetheless be within the scope of entry No. 2. We are, therefore, of the view that the Tribunal is right in holding that the turnover relating to the sale of Aegron products is taxable under entry No. 2 of the Act. 8.. In Mukesh Kumar Aggarwal Co. v. State of Madhya Pradesh [1988] 68 STC 324 (SC), the question was whether the eucalyptus wood-heaps would be timber fit for building purposes and would fall under entry 32A of Part II of the Second Schedule to the Madhya Pradesh General Sales Tax Act. The Supreme Court held that the nature of goods cannot be determined by the test of the use to which they are capable of being put to and the user test, though logical, is yet inconclusive and that the par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch as Burshane, Calgas, Indane and Esso" explain the import of "fuel gas". They do not control or limit the expression "other gases" which follows after Esso. Proceeding on that The Concise Oxford Dictionary, Eighth Edition, 1990. interpretation of entry No. 118 that not merely fuel gases but also other gases fall under that entry, the question is whether the products in question, viz., Aegron 11, Aegron 12 and Aegron 22 would also fall under entry No. 118 which is a general entry for gases. Inasmuch as there is a specific entry relating to refrigeration material, in our view, general entry will get excluded. 10.. In State of Andhra Pradesh v. T.V. Sundaram Iyengar Sons Ltd. [1987] 65 STC 41 (AP); [1984] 1 APSTJ 42, one of the questions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and thus construed there could be no question of use of R.C.C. or hume pipes, which are generally laid underground and are extremely heavy, for the purpose of use in lavatories, urinals or bath-rooms and by "sanitary fittings" what is understood is that such pipes are materials whether used in lavatories, urinals, bath-rooms and public buildings. In that case the question was not whether the same goods could be taxed under different entries. 13.. In Deputy Commissioner of Sales Tax v. G.S. Pai Co. [1980] 45 STC 58 (SC), the question arose under the Kerala General Sales Tax Act. The Supreme Court considered the meaning of the expression "sanitary fittings" in entry 26A of the First Schedule to that Act. That entire entry read "water su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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