Raw bentonite powder classified as a chemical under sales tax entry, excluding it from the residuary category.

Raw bentonite powder was treated as a chemical under entry 9 of Schedule II, Part A of the Gujarat Sales Tax Act, because its unrefined form did not change its essential character. The earlier binding view that refined bentonite powder is a chemical was applied, and the possibility that the commodity may also be regarded as a mineral did not exclude it from chemical classification. The ordinary meaning of chemical, together with the view that chemicals include basic chemicals, intermediates and end-products, supported exclusion from the residuary entry 13 of Schedule III.

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Issues: Whether raw bentonite powder is a chemical within entry 9 of Schedule II, Part A of the Gujarat Sales Tax Act, 1969 and is excluded from the residuary entry 13 of Schedule III.

Analysis: The prior binding decision holding refined bentonite powder to be a chemical was applied to the present commodity. The fact that the material was in unrefined form did not alter its essential character, and the circumstance that it may also be regarded as a mineral did not prevent it from being treated as a chemical. The classification adopted by the Tribunal was supported by the earlier view that chemicals may include basic chemicals, intermediary products, and end-products, and by the ordinary meaning of chemical as a substance used in or obtained by a chemical process.

Conclusion: Raw bentonite powder is a chemical under entry 9 of Schedule II, Part A, and is not covered by the residuary entry 13 of Schedule III. The answer is in favour of the Revenue and against the assessee.

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