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TMI Blog1993 (2) TMI 277X X X X Extracts X X X X X X X X Extracts X X X X ..... uently levied by order dated July 8, 1976. The appellate authority held that gypsum and fertilizer have different uses and thus, upheld the order of the Assessing Authority. Further appeal before the Sales Tax Tribunal met with no success. It was held by the Tribunal that gypsum is not fertilizer and, therefore, not exempted from levy of sales tax. Section 6 of the Act provides incidence of taxation. Sub-section (1) of section 6 relevant for this case, reads as under: "(1) Subject to other provisions of this Act, every dealer whose gross turnover during the year immediately preceding the commencement of this Act exceeded the taxable quantum shall be liable to pay tax under this Act on all sales and purchases effected after the coming into force of this Act: Provided that this section shall not apply to a dealer who deals exclusively in goods specified in Schedule B." Section 15 of the Act provides the rates of tax. At the relevant time, a tax at the rate of six paise in a rupee was leviable on the taxable turnover of a dealer. It was in view of the above provisions, the tax of Rs. 12,502.56 was levied on the sale of gypsum of the value of Rs. 2,08,776. Schedule "B" attached ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Webster's Third New International Dictionary, Volume 1, 1947 Edition, the word "gypsum" means: "gypsum: Mineral. Hydrous calcium sulphate, CaSO(4)2H(2)O, colorless when pure, occurring in the form of monoclinic crystals, easily splitting into folia, or massive, H.2. Sp.gr. 2.31-2.32. Gypsum occurs in all parts of the world, and is used as a dressing for soils, for making plaster of Paris, etc., salenite, alabaster, and satin-spar are varieties." In another latest edition of Webster's Third New International Dictionary of the English Language Unabridged, Volume 1, "gypsum" has been defined as under: "gypsum: 1. a widely distributed mineral CaSO(4)2H(2)O consisting of hydrous calcium sulfate that, is colorless when pure, occurs massive or in the form of monoclinic crystals that easily split into folia, and is used chiefly as a soil amendment, as a retarder in Portland cement, and in making plaster of Paris." In the Shorter Oxford English Dictionary On Historical Principles, Volume I (A-Markworthy), Third Edition and in the Oxford English Dictionary, Volume IV, 1933 Edition, the word "gypsum" gives the same meaning, which reads as under: "gypsum: Min. Hydrous calcium sulpha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent. It is not very soluble in water and does not readily decompose in the soil. However, it is more soluble than lime-stone. Gypsum is the most soluble mineral from the calcium. Agricultural gypsum contains from 50 to 95 per cent gypsum. Ames and Blotz [1916] have called attention to the twenty-year average yields of crops grown on the soils of the Wooster (Ohio) Experiment Station, which show that phosphorous carriers containing gypsum, such as superphosphate and dissolved bone black produce higher yields of corn, oats, and wheat per acre than do bonemeal and basic slag. They think it probable that the gypsum content of the added superphosphates accounts in part for the increased yields. Erdman and Bollen [1925] have shown that on some Iowa soils application of gypsum increased the yields of oats, red clover and especially alfalfa. In table 120 are given the results secured with alfalfa by these investigators on O'Neill sandy loam. Willis and Rankin [1930] demonstrated the value of gypsum in superphosphate in counteracting the toxic free ammonia produced in soils as a result of the decomposition of organic matter. Willis and Piland [1931] have called attention to the prac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing with "fertilization", at page 56 of the book, it has been noticed as under: "Prefer P from single superphosphate. If this fertilizer is not available, apply gypsum @ 50 kg. per acre particularly in sulphur-deficient soils along with other nitrogenous and phosphatic fertilizers at sowing." It was also highlighted that the Corporation made sales of gypsum to the farmers, the railways charge concessional rate of freight for chemical manures and that gypsum is included as one of the items under the chemical manures therein, the Government has been subsidising the sale of gypsum it having calcium sulphate, to boost agriculture, which facts are not disputed by the respondents. Learned counsel for the State, on the other hand, only highlighted that gypsum is used only for reclaiming the land which has turned alkali-saline and thus, is used in the process of reclamation whereas fertilizer is used after the crop is sown, as a plant nutrient. Since entry No. 27 of Schedule "B" of the Act does not talk of gypsum, the sale thereof is liable to tax. Even otherwise, gypsum is not understood as fertilizer in common parlance. A resume of above would show that to make up the deficiency of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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