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TMI Blog2004 (1) TMI 642X X X X Extracts X X X X X X X X Extracts X X X X ..... n Part C of the Second Schedule, which related to "chemicals of all kinds including copper sulphate, caustic soda, dyes and sulphur". The rate of tax for substances falling under entry 10-A was four per cent from April 1, 1996 to December 31, 1999 and eight per cent from January 1, 2000 to March 31, 2000. 2.. The assessing authority by order dated July 30, 2001, rejected the classification of nitrous oxide as a "chemical" falling under entry No. 10-A in Part C of the Second Schedule. He treated it as an unclassified goods falling under section 5(1) of the Act, for which the rate of tax was 10 per cent. 3.. In an appeal filed by the petitioner, the appellate authority held that the nitrous oxide was an "industrial gas "falling under entr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " falling under entry No. 10-A in Part C of the Second Schedule or as a "surgical aids" falling under entry No. 21 in Part S of the Second Schedule. 6.. "Chemical" in a broad sense refers to all substances produced by any chemical process. The principal use of nitrous oxide (laughing gas) is as an anaesthetic in surgical operation procedures of short duration. The fact that nitrous oxide is produced by a chemical process and therefore would fall under the general definition of "chemical" is not disputed by the State. What is contended by the State is that the "nitrous oxide" falls under specific separate entry enacted by the State dealing with surgical aids (entry No. 21 in Part S of the Second Schedule) and therefore, it gets excluded fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the division Bench of this Court in Indian Oxygen Ltd. v. State of Karnataka reported in [1990] 79 STC 351, which considered the question whether "medicinal oxygen" and "nitrous oxide" used as anaesthetics in hospitals could be treated as "industrial gas" falling under (old) entry No. 121 of the Second Schedule or should be taxed under section 5(1) as a product not specifically provided for. The division Bench held that "oxygen" in the entry "industrial gas such as oxygen, acetylene, nitrogen and the like" can only refer to oxygen which is accepted in trade as an industrial gas. It held that "medical oxygen" is different from "industrial oxygen" and that if a product is not an "industrial gas" as understood in common parlance by those ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eona plaster of paris bandage, fixed partial dentures, enamelled iron trays, and basins (used in the hospital), ECG recording chart, ECG jelly, drip set, disposable hypodermic needles, cotton buds, bed elevators absorbent cotton rolls and the like." (emphasis supplied). Entry 21 (Part S) as it presently stands encompasses every substance or product considered as a surgical/dental instrument or tool, or surgical/dental aid. The legislative intent is to rope in all items relating to or associated with or useful in surgery and dentistry under entry 21 in Part S. The term "surgical" contextually refers to the branch of medicine dealing with the practice of treating injuries or diseases by any manual, mechanical or operative procedures or meas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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