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Commissioner of Sales Tax Vs. Agrawal Agencies - Court Judgment

LegalCrystal Citation
SubjectSales Tax
CourtAllahabad High Court
Decided On
Case NumberS.T.R. No. 726 of 1978
Judge
Reported in[1980]45STC455(All)
AppellantCommissioner of Sales Tax
RespondentAgrawal Agencies
Appellant AdvocateStanding Counsel
Respondent AdvocateNone
DispositionPetition alloowed
Excerpt:
- .....purchased the assessee was held not liable to pay any tax on it. in commissioner, sales tax v. prayag chemical works [1970] 25 s.t.c 85 (f.b), a full bench of this court observed:according to shorter oxford dictionary 'chemical' means anything obtained or used in chemistry. the word has been judicially construed in the u.s.a. there it means a substance used for producing a chemical effect or produced by a chemical process.3. there is no finding or evidence that adhesive was obtained or used in chemistry or that it was a substance used for producing a chemical effect or produced by a chemical process. in the absence of a finding on any of these aspects, it is difficult to uphold the order.4. in the result, this revision succeeds and is allowed. the order passed by the additional revising.....
Judgment:

R.M. Sahai, J.

1. The following question of law was referred for the opinion of this Court:

Whether adhesive falls under the category of chemical or is unclassified item

2. As the law has been amended this reference is decided as revision under Section 11 of the U.P. Sales Tax Act. The revising authority held 'adhesive' appears to have been prepared by chemicals and used for industrial purposes. It was therefore chemical. As it is locally purchased the assessee was held not liable to pay any tax on it. In Commissioner, Sales Tax v. Prayag Chemical Works [1970] 25 S.T.C 85 (F.B), a Full Bench of this Court observed:

According to Shorter Oxford Dictionary 'chemical' means anything obtained or used in chemistry. The word has been judicially construed in the U.S.A. There it means a substance used for producing a chemical effect or produced by a chemical process.

3. There is no finding or evidence that adhesive was obtained or used in chemistry or that it was a substance used for producing a chemical effect or produced by a chemical process. In the absence of a finding on any of these aspects, it is difficult to uphold the order.

4. In the result, this revision succeeds and is allowed. The order passed by the Additional Revising Authority is set aside. He shall decide the revision afresh. As nobody appeared for the assessee there shall be no order as to costs.


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