1981 (4) TMI 6

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..... cyclo-hexane, and on further processing that leads to caprolactum. When caprolactum is subjected to heat up to 270 degrees, Nylon-6 results therefrom in the form of yarn. The chemical composition of caprolactum remains the same when it is converted into nylon fibre. When the nylon fibre is subjected to further heating the process is reversed and the nylon fibre is reconverted into caprolactum. For the assessment year 1965-66, the respondent claimed rebate of surtax under the first proviso to para. one of the Third Schedule to the Companies (Profits) Surtax Act, 1964, on the ground that its product, Nylon-6, was covered by item No. 19 of para. two of Schedule III. Item No. 19 read: "Petrochemicals including corresponding products manufactu .....

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..... ndent appealed to the I.T. Appellate Tribunal, and the four appeals were allowed by the Appellate Tribunal by its consolidated order dated 28th November, 1974, on the finding that Nylon-6 produced by the respondent was a " petrochemical " and covered by the relevant items in the respective Schedules. The appellant applied to the Appellate Tribunal for a reference in each case to the High Court, and the applications were dismissed by the Appellate Tribunal by a common order dated 16th August, 1975, on the ground that no question of law arose out of the Appellate Tribunal's order disposing of the appeals. The appellant then applied to the High Court for an order directing the Appellate Tribunal to refer the cases, and on 3rd November, 1976, .....

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..... which the relevant rebate and relief were intended by Parliament. We have carefully analysed the mass of evidentiary material, and have noted the well-settled criteria applied by the Appellate Tribunal to that material. The Appellate Tribunal took the view that the primary criterion must be the commercial sense in which the expression " petrochemical " was used in the statutory entry, that is to say, the sense in which those who are dealing with the commodity generally understand it. A long line of cases has laid down that test, and we may refer to one of them, Porritts & Spencer (Asia) Ltd. v. State of Haryana [1979] 1 SCR 545 ; [1978] 42 STC 431 ; AIR 1979 SC 300. There is nothing to show that the finding of the Appellate Tribunal procee .....

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