2006 (7) TMI 623

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..... 996-97, is whether the produce manufactured and sold by the petitioner, namely bleaching powder, is assessable as chemical under entry 29 of the First Schedule to the Kerala General Sales Tax Act, 1963, taxable at 10 per cent at the point of first sale in the State, or whether it falls under lime and dehydrated lime taxable at the reduced rate of 2.5 per cent under entry 28 of the Second Sched .....

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..... for concessional rate of tax only on lime and dehydrated lime, and not for any products made out of lime. The first question to be considered is whether the item comes within the description of lime and dehydrated lime under the notification above referred. The manufacturing activity of the product as explained by the Tribunal in its order, which is not in dispute, is as follows: Blea .....

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..... erence being that in the latter item, moisture is not present. By no means, the product bleaching powder can be identified as lime pure and simple. In the course of manufacturing, it obviously undergoes a change involving loss of identity of lime and what emerges is a new product with different odour and characteristics. In fact, the chlorine content is what gives it the capacity to act as a di .....

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..... ection 5. 10 The Tribunal has extracted the meaning of the term chemical as contained in the new Webster's Dictionary of English language, as a substance produced by or used in a chemical process . It is clear from the manufacturing process that bleaching powder is a chemical product manufactured from out of chemicals in a factory. In fact, the petitioner himself is running a factory .....

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..... ents and mixtures not elsewhere mentioned in the Schedule are covered therein. In fact, entry 29 is a residuary entry for all chemicals except those specifically mentioned elsewhere in the First Schedule to the KGST Act. In this view of the matter, we uphold the finding of the Tribunal that the product manufactured and sold by the petitioner, namely, bleaching powder answers the description of ch .....

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