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Judgment
Rajes Kumar, J.—Present ten revisions u/s 11 of U.P. Trade Tax Act (hereinafter referred to as "Act") are directed against the order of Tribunal relating to the assessment years, 1985-86, 1986-87, 1987-88, 1988-89,1989-90 and 1990-91 broth under the U.P. Trade Tax Act and Central sales Tax Act.
In all the aforesaid revisions, the dispute relate to the rate of tax on the various items. In some of the years, the dispute also relate to the interest u/s 8(1) of the Act.
In revision Nos. (1062) of 1998, (1064) of 1998, (1054) of 1998, (1063) of 1998 and (1053) of 1998, the following common questions have been raised by way of amendment.
Whether on the facts and in the circumstances of the case, the Trade Tax Tribunal was legally justified to hold that campher oil, penbon oil, pine oil, citbenine oil were taxable as oil of all kinds?
Annul the demand of interest u/s 8(1) of the U.P. Trade Tax Act?
In revision Nos. (144) of 1997, (145) of 1997 and (143) of 1997, the following common question has been raised by way of amendment.
Whether on the facts and in the circumstances of the case, the Trade Tax Tribunal was legally justified to hold that camphor oil, penbon oil, pine oil, citbenine oil were taxable as oil of all kinds?
In Revision Nos. (638) of 1998 and (539) of 1998, following common questions have been raised.
(i) Whether on the facts and in the circumstances of the case, the Trade Tax Tribunal was legally justified to hold that camphor oil, penbon oil, pine oil, citbenine oil were taxable as oil of all kinds?
(ii)Whether on the facts and in the circumstances of the case, the Trade Tax Tribunal was legally justified to hold that Sodium Acetate, Trihydrate, Sodium Acetate Solution, Capolite, C.P. Resin are chemicals/ unclassified items taxable at the rate of 8.8 percent.?
I have perused the order of the Tribunal.
From the perusal of the order of the Tribunal, it appears that the dispute relates to the following items. The chart showing the year wise details of the disputed items are referred herein below:
Trade Tax Year lten in dispute View of View of the Revision Assessing the Tribunal. No. Authority 144/97 1985-86 Capolyte CP Paint Unclassified. (U.P) Resin, and Sodium Varnish. Acetate Trihydrate and Sodium Acetate Solution. 539/98 (i) Pinetar Oil, Scent & Oils of all 1986-87 Penwane Oil perfume. kind. Noti- (U.P.) Campher Oil, fication No. & Citawin Oil. 3557, dated (ii) Sodium Paint and 31.07.85 @ acetate Varnish/ 5%. Chemical. Trihydrate Scent and Unclassified and Capolyte Perfume. (Neither Scent CP Resin. and Perfume nor Chemical.
638/98 1986-87 Pinetar Oil, Scent and Oils of all (Central) Penwane Oil perfume. kind. Notif- Campher Oil, ication No. & Citawin Oil. 3557, dated 31.07.85 @ Sodium Paint and 5%. Chemical. acetate Varnish/ Scent Unclassified Trihydrate and Perfume. (Neither Scen and Capolyte and Perfume CP Resin. Nor Chemical.
1062/98 1987-88 Capolyte C Scent and Unclassified (U.P.) P Resin. Perfume deleted. Interest under Section 8(1) 1064/98 1987-88 Capolyte C Scent and Unclassified (Central) P Resin. Perfume deleted. Interest under Section 8(1) 1054/98 1988-89 Capolyte C Scent and Unclassified U.P.) P Resin. Perfume 1065/98 1988-89 Capolyte C Scent and Unclassified (Central) P Resin. Perfume 143/97 1989-90 Capolyte C Scent and Unclassified (U.P.) P Resin. Perfume 145/97 1988-90 Capolyte C Scent and Unclassified (Central) P Resin. Perfume 1053/98 1988-91 Capolyte C Paint and (Central) P Resin. Varsnih. Unclassified Interest Deleted. under C Section 8(1)
Apart from the dispute of classification of the items, no other dispute is involved and arises from the order of the Tribunal. Thus, dispute regarding the classification of the following items only, requires adjudication.
Camphor Oil, Pinetar Oil, Penwane Oil, Citawin Oil, Capolyte C.P. Resin, Sodium Acetate Trihydrate, Sodium Acetate Solution and Sodium Acetate Trihydrate.
The aforesaid items have been described as follows by the Tribunal.
Sodium Acetate Trihydrate.
It is a granular sodium salt by look. It is without any colour or white granular and is soluble in water as per technical literature. It is used for following purposes.
In the tanning industry, as a washing salt.
In printing and dyeing of textiles, as a mordant.
In the manufacture of dry colours.
In electroplating, as a reagent.
In chemical synthesis and processing, as an intermediate.
In analytical chemistry for eliminating effects of strong acids, as an important reagent.
In photography it is used with other salts to prevent discolouration of colour photographs.
In chemical and pharmaceutical industries, as a buffering agent.
In the manufacture of acetic acid, copper acetate, cinnamic acid etc.
For various steels in water and olefnic polymers, as a corrosion inhibitor.
Caspolvte CP Resins.
Introduction:
Capolyte CP Resins are thermoplastic polymers manufactured by copolymerization by bicyclic terpene hydrocarbons (like alpha pinene, beta pinene anddelta-3-carene) and phenol. In structure they are hard, triable and highly compatible. Capolyte CP Resins are light coloured and do not contain any resin or resin derivatives. Depending on the intended use, the range of softening points varies between 55 C and 135 C.
Solubility.
Capolyte CP Resins are soluble in all proportions, in petroleum solvents (aliphatic hydrocarbons), coal tar solvents (aromatic hydrocarbons), mineral oil, terrene hydrocarbons and in long chain alcohols, esters and ketenes. However, these resins are insoluble in lower alcohols, esters and ketenes. Additionally, capolyte CP Resins are soluble in paints and varnish oils, which are mainly of the forty and glycerine types, These include linseed, soya, dehydrated castor, perilla and cottonseed oils.
Applications:
For natural and synthetic rubber products such as tubes, tyres, fabric linings, shoes, tapes, hoses, moulded products, gaskets, rubber tiling and wire insulation, as excellent plasticizers and tackifiers.
In the manufacture of paints, varnishes, enamels, lacquers waterproofing and coatings, for concrete plaster and structural materials.
In the production of a variety of printing inks used for mimeographing, stamping, retrograveouring and for printing on sacks and cartons.
In pressure sensitive adhesive tapes, surgical tapes, glass and cell phone adhesives, latex and plywood adhesives, and polystyrene and cement.
In the manufacture of hot melt coatings for folding cartons, corrugated containers, heat-sealable labels, book binding and mulliwall paperbtigs.
In plain and corrugated paper board stiffening, hot melt coating of paper, quick drying paper sealing cements, paper waxing and paper insulating treatment.
Sodium Acetate Solution.
Chemical classification: Solution of sodium salt of acetic acid. Appearance, Light brown solution at 40 C may crystallize on cooling. Applications:
In leather and textile industries as a neutralizer and mordant.
In manufacture of sodium acetate.
Tribunal has not given any description or details about the Camphor Oil, pine Oil and Citawin Oil. They have been treated as "Oils of all kind" without giving any description merely relying upon the decision of the earlier year. Copy Of the order of the earlier year has not been produced by either of the party.
In this view of the matter, it may be appropriate that revision Nos. 539 of 1998 and 638 of 1998 relating to the assessment year 1986-87 both under the U.P. /Trade Tax Act and Central Sales Tax Act for the aforesaid items may be sent back to the Tribunal to adjudicate the issue afresh.
So far as Sodium Acetate Trihydrate, Capolyte CP Resin and Sodium Acetate Solution are concerned, I do not find any error in the order of the Tribunal. In the revision petitions, it has been stated that these it''-ms are used in the manufacturing of paint and Varnish, nowhere, it has been stated that they are used as paint and varnish. Therefore, Tribunal is right in treating them as an unclassified items being not specified elsewhere.
So far as the question relating to the interest u/s 8(1) of the Act for the assessment years, 1987-88. 1989-90 and 1990-91 are concerns, I do not find any error in the order of the Tribunal. The question relating to the rate of tax was highly debatable and dealer has disputed the rate of tax bonafidely. Therefore, the demand of interest u/s 8(1) of the Act has been rightly set aside by the Tribunal.
In the result, revision Nos. (143) of 1997, (144) of 1997, (145) of 1997 (1062) of 1998, (1064) of 1998, (1054) of 1998, (1063) of 1998. and (1053) of 1998 are dismissed and revision Nos. (539) of 1998 and (638) of 1998 are allowed in part. The matter is remanded back to the Tribunal to consider and examine the nature of Camphor Oil, Pinetar Oil, Penwane Oil and Citawin Oil and adjudicate the issue whether they are covered under the entry "Oils of all kind" or scent or perfume.