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TMI Blog1975 (5) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... for application to the soil and/or for use in the preparation of "bordeaux mixture" which is a fungicide composed of copper-sulphate, lime and water. The assessing authority levied tax on the turnover of the dealers at 3 per cent under section 5(1) of the Act on the assumption that lime sold by the dealers does not fall within any of the items of the Second Schedule to the Act. The dealers did not prefer any appeal against the said orders of assessment. The Deputy Commissioner of Commercial Taxes, Mangalore (in assessments of the respondents in S.T.R.P. Nos. 5, 7, 8 and 9 of 1974), and the Assistant Commissioner of Commercial Taxes, Mangalore (in assessments of the respondent in S.T.R.P. No. 18 of 1974), initiated proceedings under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is also undisputed that it is produced in bulk at cheap rates and that being the case, "lime" falls within the meaning of "heavy chemicals" under item No. 79 of the Second Schedule to the Act. The question for decision in these revision petitions is whether "lime" manufactured from sea-shell in this country falls within the meaning of item No. 79 of the Second Schedule to the Act, which reads: "SECOND SCHEDULE Goods on the sale of which a single point tax is leviable on the first or earliest of successive dealers in the State under section 5(3)(a). Sl. No. Description of the goods Rate of tax 1. 79. Heavy chemicals (such as sulphuric acid, hydrochloric acid, caustic soda, etc.) Six per cent.' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etwork of pipes, conduits and other conveyors. Requiring large groundspace, and ample facilities for waste disposal, the plant is ordinarily established where acid fumes and other noxious substances do minimum harm to vegetation and man; that is, by preference in a desolate area not too far away from a harbour or other crossroads of economical transport. Usage and opinion vary considerably as to the specific industries possessing these general economic characteristics, but in most countries at the present time the heavy chemical industries include the following manufactures: Sulphuric acid and other mineral acids; soda ash and other alkalies; fertilizers including phosphates, nitrates, potash salts and ammonium sulphate, bleaching compoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ical industry in that the chemicals are produced in huge plants. Chemicals produced by cottage industries, though they may produce chemicals cheap per unit of weight, cannot be considered as heavy chemical industries. It all depends upon the nature of the industry in the particular country producing the chemical. In Western countries, textiles are produced in mills; but in India, textiles are produced not only in mills but also by handlooms. It is undisputed that in India lime produced from sea-shell is not a product manufactured in huge plants. Lime is a product derived by baking sea-shell in country kilns as was done centuries ago. Sri Urs, the learned counsel for the State, submitted that lime is also produced in huge quantities as a b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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