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of <h1>Formaldehyde taxed at 8% rate under item 138, not 106. State's revision petition dismissed.</h1> The Court upheld the Tribunal's decision, classifying formaldehyde under item 138 of the First Schedule of the Tamil Nadu General Sales Tax Act, 1959, and ... - Issues:1. Dispute over the rate of tax on the sale of formaldehyde.2. Classification of formaldehyde under the Tamil Nadu General Sales Tax Act, 1959.Detailed Analysis:1. The State filed a revision petition disputing the rate of tax on the sale of formaldehyde, which the assessee contested, leading to the Appellate Assistant Commissioner sustaining the tax at 10%. The Tribunal, based on a previous decision, classified formaldehyde as a chemical falling under item 138 of the First Schedule, not as a liquefied or solidified gas under item 106. The State argued that formaldehyde should be taxed at 10%, falling under item 106, while the assessee contended it falls under item 138.2. The Court examined the definition of formaldehyde from the Condensed Chemical Dictionary, highlighting its properties, uses, and derivation. The dictionary clarified that formaldehyde is not a liquefied or solidified gas but a readily polymerizable gas, leading the Court to uphold the Tribunal's classification under item 138. The Court dismissed the State's revision petition, affirming that formaldehyde does not fall under item 106 and is taxable at 8%, as determined by the Tribunal.In conclusion, the Court upheld the Tribunal's decision regarding the classification of formaldehyde under the Tamil Nadu General Sales Tax Act, 1959, dismissing the State's revision petition and confirming that formaldehyde falls under item 138 of the First Schedule, taxable at 8%.
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