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TMI Blog1981 (12) TMI 149X X X X Extracts X X X X X X X X Extracts X X X X ..... g period, the assessee's contention was that the lime of all the three varieties was covered by entry 9 of Schedule II, Part A, to the Gujarat Sales Tax Act, 1969 (hereinafter referred to as "the Act"). The Sales Tax Officer held that whereas sojat lime and gotan lime were covered by entry 9 of Schedule II, Part A, merta lime was not comprehended within the said entry and that the said variety of lime was liable to be subjected to sales tax under the residuary entry 13 of Schedule III to the said Act. The assessee carried the matter in appeal before the Assistant Commissioner of Sales Tax who held that lime of all the three varieties was of the same type and quality though the trade names were different depending upon the place from whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t were used as building materials, more particularly as mortar for plaster and as whitewashing material. It further held that the lime of those three varieties was used as one of the ingredients in mortar as well as in whitewash and that it was not capable of being directly used as building material. The Tribunal precisely found: "........ it is common knowledge that lime is not a basic chemical.............. So far as the production of mortar is concerned, lime is used as one of the ingredients..............lime cannot be used without admixture for whitewash........ In the materials furnished on behalf of both the parties, it is nowhere stated that lime can be directly used as building materials. From this it is clear that as a building ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ---------------------------------------- 9 Dyes and chemicals other than 3 paise in the 3 paise in the those specified in any other entry rupee. rupee." in this or any other schedule. ----------------------------------------------------------------------------------------------- Entry 13 of Schedule III to the Act reads as under: "SCHEDULE III ----------------------------------------------------------------------------------------------- Sl. No. Description of goods Rate of sales tax Rate of general sales tax 1 2 3 4 ----------------------------------------------------------------------------------------------- 13 All goods other than those 5 paise in the 3 paise in the specified from time to time in rupee. rupee." section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rly, the word "chemicals" occurring in the said entry was the subject-matter of interpretation. Having considered the discussion contained under the caption "chemical industry", in the Encyclopaedia Britannica, 5th Volume, the court proceeded to observe as follows: "This shows that, broadly speaking, all chemicals which are used in the commercial world can be classified as (1) basic chemicals, (2) chemical products which are intermediary and which are used for producing other finished articles, and (3) end-products, which are ready for final consumption. Speaking of entry No. 4 of Schedule C which contemplates 'dyes and chemicals', we have to consider in what particular category out of the three categories mentioned above, the word 'chemi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... products. The Tribunal has found as a matter of fact, on the basis of the evidence led before it, that the three varieties of lime in question are used in the preparation of various types of mortars as well as in preparation of whitewash. So far as mortar is concerned, lime is used as one of the ingredients along with cement and sand and so far as whitewash is concerned lime is mixed with glue and other materials to prepare white wash which is applied as a paint. The Tribunal, in the light of those findings, rightly concluded that lime was an intermediary agent used for the purpose of producing finished products such as mortar and whitewash which are utilised in the building construction activity. That lime is a chemical is not in dispute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e.... Commercially quicklime is commonly produced by burning carefully graded limestone in rotary kilns, similar to those used in portland cement manufacture, and in large stationary vertical kilns..... Hydraulic lime is a type of cementitious lime that will set and harden under water in a manner similar to portland cement. It is obtained by calcining an impute limestone containing large quantities of silica and alumina so that sufficient calcium silicates and aluminates are formed to give the lime its characteristic hydraulic properties. Hydraulic limes are widely used in Europe for mortars in masonry construction; use in the U.S. however, is limited. .............................. Uses......... A large new market exists in the use o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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