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TMI Blog2008 (11) TMI 647X X X X Extracts X X X X X X X X Extracts X X X X ..... ing guarded rubber sheets sold by the respondent is natural rubber latex falling under entry 74 of the First Schedule to the TNGST Act, 1959? 2.. Whether the Tribunal has failed to follow the decision of this honourable court in Okay Rubber Corporation v. State of Tamil Nadu reported in [1984] 55 STC 247 which has held that raw rubber sheets are not latex? 3.. Whether the Tribunal ought not to have relied upon the decision of the apex court in Karnataka Forest Development Corporation Ltd. v. Cantreads Pvt. Ltd. reported in [1994] 95 STC 561 wherein the limited question dealt with was whether rubber sheets produced out of rubber latex could still be treated as "forest produce" as defined under the Karnataka Forest Act, 1963? 4.. Whether t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reby, latex and natural rubber cannot be transported unless they are packed in tins or glass containers and they also cannot be carried or transported without such packing. The appellate authority was also of the opinion that RMA rubber sheets can be folded, carried and transported without containers by bundling them up or by wrapping them in card boxes. Similarly, the appellate authority also opined that the latex rubber which is either raw or natural rubber is packed only in drums or containers and sold in litre quantity basis whereas RMA rubber sheets and other grades of rubber sheets are sold only in kgms. weight basis and came to the conclusion that the goods imported by the assessee would fall under the category of items included und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion. Originally, the assessment was completed by the assessing officer accepting the returns filed by the assessee. It was only thereafter, proceedings were taken to revise the assessment, treating the goods sold by the assessee as rubber products falling under entry 126 of the First Schedule to the TNGST Act. Eventhough the assessee has contended that the goods sold by them fall under entry 74 of the First Schedule and as such, it was taxable only at the hands of the last purchaser, the same was not accepted by the assessing officer as well as by the Appellate Assistant Commissioner. According to the Revenue, the raw rubber would only be in liquid form. The said finding is basically wrong. Natural rubber, otherwise called as latex, is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Development Corporation Ltd. v. Cantreads Pvt. Ltd. [1994] 95 STC 561 (SC), held that rubber sheets and various grades obtained by hardening latex with acid and dried with smoke continue to be rubber and observed thus (at page 561): "Latex is the modern name for caoutchouc. It is nothing but natural rubber. Caoutchouc or latex means not only the milky substance obtained from the trees but it included all milk substance processed, till it is made marketable. Since the processing does not result in bringing out a new commodity but it preserves the same and renders it fit for being marketed, it does not change its character. It was caoutchouc or latex when it was obtained from the trees, it continued to be caoutchouc or latex when it was trea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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