TMI Blog1999 (3) TMI 611X X X X Extracts X X X X X X X X Extracts X X X X ..... urnover of Rs. 4,40,675 for the assessment year 1983-84. 2.. Tvl. Arunachalam and Co., dealers in dyes and chemicals while filing the return for the assessment years 1981-82, 1982-83 and 1983-84 reported the turnover of the first sales of acromine colours could be only at the rate of 8 per cent under entry 138 of the First Schedule. But the assessing authority felt that the acromine colour could be used as textile emulsion for printing in textiles, and the said colours can be used as pigments falling under item 110 of the First Schedule taxable at 10 per cent single point. Hence the assessing authority levied the tax at the rate of 10 per cent in respect of the turnover of first sales of acromine colours for all the three assessment years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax could be 10 per cent upon the turnover of first sale of acromine colours as held by the lower authorities under entry 110 of the First Schedule prevailing at the time or the rate of tax could be 8 per cent under entry 138 of the First Schedule. It is no doubt that the concurrent finding of all the three lower authorities is that the acromine colours had been used in printing textiles as pigments. Even the assessing authority in his order had clearly stated that the acromine colours could be used only as textile emulsion for printing textiles and that the said colours as pigments could fall under item 110 of the First Schedule taxable at 10 per cent single point. The very same reasoning had also been accepted by the AAC as well as the sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cent and now under entry 16 of Part 'E' at 12 per cent. Of course, if hand painting on cloth is done with some colours or pigments, such colour or pigment would also come under the higher rate of 12 per cent under entry 16 of Part 'E'. But any colour or colour base, like a dye for soaking or printing on cloth, will only be at lower rate of 5 per cent under entry 175 earlier and now entry 49 of Part 'C'. Sd/A. Shahul Hameed, for Special Commissioner and Commissioner of Commercial Taxes." This clarification was issued on February 6, 1994 upon an application filed by some other assessee on his petition dated January 6, 1993. Now, we are concerned for the assessment years 1981-82, 1982-83 and 1983-84. In such circumstance it is no doubt fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts, oil bound distemper, water pigments, finishes for leather, plastic emulsion paints, turpentine oil, bale oil, white oil and thinners. The words polish including metal polishing bars were added by Act No. 7 of 1977 with effect from July 25, 1977." In this group of materials mentioned under entry 110, we could see that the colours is amongst the group of distempers, varnishes, and blacks including metal polishing bars and thereby it is nowhere found under entry 110 that the colour used in printing textiles could be covered under entry 110 of the First Schedule. The meaning of a word is to be judged by the company it keeps as pointed out by the Orissa High Court in Tejraj Parasmal v. State of Orissa [1995] 96 STC 464 [FB]. So, for the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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