Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2016 (10) TMI 15

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... w that while interpreting a classification it is the "word" an "item" as is understood in common parlance, which is to be taken into account. The decision in the case of State of Madhya Pradesh vs. Marico Industries Ltd. [2016 (7) TMI 1057 - SUPREME COURT] is relied upon. "Enzyme" a chemical under Notification no.1084 dated 25.02.2003 to be chargeable to tax as chemical @ 4% - revision dismissed - decided against Revenue. - Sales/Trade Tax Revision No. 82 of 2015 - - - Dated:- 27-9-2016 - Hon'ble Bharati Sapru, J. For the Applicant : S.C. For Opposite Party : Nishant Mishra ORDER Heard Sri B.K. Pandey and Sri Nimai Das, learned Standing Counsel for the State and Sri S.D.Singh, learned Senior Counsel assisted by .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... M/s. Indian Oil Corporation Ltd., M/s. Bharat Petroleum Corporation Ltd. M/s. Hindustan Petroleum Corporation Ltd., and M/s. Indo Burma Petroleum Ltd., the tax shall be levied at the point of sale by such dealer to a person other than any of the aforesaid dealers. 10 per cent Learned Standing Counsel has sought to argue that an enzyme is in the nature of protein and, therefore, it cannot be classified under the entry of chemicals of all kinds but it should be treated as an unclassified item and should be charged to tax @10%. Learned Counsel for the assessee argues to the contrary. He relies on a decision of Hon'ble Apex Court in the case of Mauri Yeast India Pvt. Ltd. vs. State of U.P. reported in 2 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e substances produced by living organisms, which, by its mere presence, are capable of bringing about or speeding up certain chemical changes. For example, food is digested through the action of certain enzymes, starch is converted into sugar by the action of enzymes. Although an enzyme does affect chemical changes, a very small quantity of enzyme is capable of converting a very large quantity of substance from one form to another form, but enzyme itself is neither destroyed nor changed. Hence, enzymes are known as catalytic agents. It is on this paragraph of the aforesaid judgment that learned Standing Counsel has relied on to show that an enzyme would not be a chemical rather it would be a protein. Other than the submission made by l .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... groups of fatty acids or other organic acids. They occur in all plant and animal tissues and are considered the basic units of proteins, from which they may be obtained by hydrolysis. Catalyst as:- Catalyst (kaet'list) n. a substance that alters the rate of a chemical reaction and is itself unchanged by the process. Catalysts usually increase the rate of chemical reaction, so enabling them, for example, to take place under milder conditions (e.g. at lower temperatures) than would otherwise be possible cat.a.lyt.ic (kaet'litik) adj. Causing or relating to catalysis. From a reading of these four definitions the conclusion would be that an enzyme is a catalyst that is a substance, which alters the rate of a chemical react .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... cific entry. In this case he has argued that although the learned Standing Counsel has sought to cover enzymes as protein but he was unable to show any notification under which protein has been specifically detailed. Learned Standing Counsel has sought to argue that an enzyme is a protein but the definition of word protein also tends to lead to the conclusion that the protein would also be included in the all encompassing entry of chemicals. Therefore, the contention of the learned Standing Counsel that enzyme should be included in the residuary entry and should be taxed @ 10% is false and untenable. In blacks medical dictionary the Enzyme is defined as:- ENZYME is the name applied to a chemical ferment produced by living cells. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ar and absorbs in the body to provide energy. The argument of the learned Standing Counsel, therefore, that an enzyme is a protein is not acceptable. An enzyme is in the nature of chemical substance, which acts upon a protein and helps in the process of absorption of food by converting the sugars and starch into energy for the body. In common parlance also an enzyme is understood to be a catalyst agent, which helps in the break-up of food in the intestines and leads to better digestion. It is well settled in law that while interpreting a classification it is the word an item as is understood in common parlance, which is to be taken into account. Reference may be had to the decision of Hon'ble Apex Court in the case of State of .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates