9911796707
TMI Blog1985 (8) TMI 340X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts and circumstances of the case, the materials sold by the assessee, which are used as colouring agent, are covered under entry No. 25 of Part II of Schedule II of the Act?" 3.. The material facts are these: The dealer/assessee is a company dealing in manufacture and sale of red oxide of iron. It was assessed to sales tax under the Act of 1958, for the two periods, namely, from 1st July, 1966, to 30th June, 1967, and 1st July, 1967, to 30th June, 1968. The sale of red oxide of iron was taxed at the rates specified under entry No. 25 of Part II of Schedule II. The contention of the dealer/assessee was that the red oxide of iron was a natural dry pigment. This contention was rejected by the assessing authority observing: "Accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or not. According to the Tribunal, the question was whether the red oxide of iron procured from the natural sources and powdered and sold thereafter are colouring material for cement and, therefore, could be classed as a "dye". The Tribunal came to the conclusion that the red oxide of iron was not a "dye" and, therefore, is not covered under entry No. 25 of Part II of Schedule II of the Act of 1958. The Tribunal observed as follows: "If there is some material which a user himself has only to mix in water or some other commonly available liquid like oil to use it as a paint, I would consider it as taxable under entry No. 25. But the learned counsel for the appellant urged that the material sold by the appellant is not so usable; the paint ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... containing it. Corpus Juris Secundum defines "dye" as a colouring matter in solution and as a verb, to impregnate with colouring matter held in solution. In Chambers 20th Century Dictionary, the meaning attributed to the word "dye" is to give a new colour to. The words "dye", "dyer" and "dyeing" are commonly understood as (denoting) the ordinary process of colouring articles by using a colour powder. It has been found by the assessing authority and it is not disputed that the red oxide of iron is used as colouring agent for cement and plaster. Thus, it being a finding of fact, in our opinion, the material red oxide of iron manufactured and sold by the dealer/assessee for imparting colour to cement and plaster, therefore, is a colour powder ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... strued in their common context and in the sense, as ordinarily understood and attributed to these words by the people usually conversant and dealing with any such goods. It has been further laid down that the words "dyes and colours" would not include food colours and syrup essences which are edible goods and cannot come within the entry "dyes and colours and compositions thereof" as they do not, prima facie, connote that they are edible goods. The distinction was sought to be made on edible and non-edible colours. This case, however, is clearly distinguishable on facts. It has been already noted that the red oxide of iron manufactured and sold by the dealer/assessee is used for colouring cement and plaster. The learned counsel for the deal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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