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TMI Blog2016 (10) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... s also arrived at its own decision by way of which it has declared that "Enzymes" would fall under the entry of the chemical under Notification No.1084 dated 25.02.2003 and would, therefore, be liable to tax @ 4% and could not be treated as an unclassified item liable to tax @ 10% as determined by the assessing authority. The question of law referred to in this revision is quoted here-under:- "Whether under the facts and circumstances of the case, the Commercial Tax Tribunal was legally justified in holding that the enzyme falls under Notification no.1084 dated 25.2.2003 hence liable to tax @ 4% and not as unclassified item liable to tax @ 10% as determined by the assessing authority?" The entry, which is sought to be examined is here-un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the constituents of Yeast. Paragraph no.18 of the judgment is quoted here-under:- "Sri. S.C. Dubey, a Baking Technician of repute of U.S. Wheat Associates, New Delhi has done an extensive research on yeast and its functions. It is profitable to refer to the following passage from his writing:- "Yeast is unicellular microscopic plant. Its structure consists of cell wall, protoplasm, and vacuole. It requires food (in the form of simple sugar), moisture and temperature climate for its growth and reproduction. Yeast multiplies by budding. When yeast cell is placed in a liquid medium at optimum temperature (80-85F) containing simple sugar (dextrose or fructose), then the cell starts growing buds on its cell wall which keep on growing until ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omoting the chemical reactions upon which life depends (e.g. digestion, respiration, reproduction). They accomplish this by acting like catalysts while themselves undergoing little or no change. Their action is often specific and reversible and may be dependent upon temperature. PH, and the presence of various coenzymes and activators (metallic salts, vitamis etc.). Protein as:- "pro-tein (prouti:n) n. (chem) any of a class of naturally occurring, usually colloidal, complex combinations of amino acids (containing carbon, hydrogen, oxygen, nitrogen, usually sulfar, occasionally phosphorus) which are essential constituents of all living cells, being responsible for growth and maintenance of all tissue, and the essential nitrogenous constit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s would not be included in the classification of chemicals, which was all encompassing and would include enzymes. The second argument of the learned counsel for the assessee is that the assessee placed expert opinion before the Tribunal as well as the appellate authority to show why enzymes fall within the category of chemicals but the expert opinion as given by the assessee was not rebutted at any stage by the State. The third argument of the learned counsel for the assessee is that the judgment of the Apex Court in the case of Mauri (supra) would fully apply to the case of the assessee because a similar article was being classified and was included as a chemical under similar entry and lastly learned counsel for the assessee argues that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bed as the modus operandi of the body. Examples of enzymes are found in the ptyalin of saliva and diastase of pancreatic juice which split up starch into sugar, the pepsin of the gastric juice and the trypsin of pancreatic juice which break proteins into simpler molecules and eventually into the constituent amino-acids, the thrombin of the blood which causes coagulation. PROTEIN as :- PROTEIN is the term applied to members of a group of non-crystallizable nitrogenous substances widely distributed in the animal and vegetable kingdoms and forming the characteristic materials of their tissues and fluids. They are essentially combinations of amino acids." Thus, the reading of two definitions shows that while proteins are in the nature of fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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