Tax classification of mefron gas as a chemical upheld; rectification proceedings could not reopen disputed facts.

Mefron gas was treated as chloro-flouro hydrocarbon and, on that basis, classified as a chemical taxable at 10% rather than as an accessory to refrigeration and air-conditioners taxable at 15%. The record did not show that mefron gas was a different substance, and the material before the assessing authority was insufficient to dislodge the classification finding. The Court also held that a disputed question of fact or a debatable question of law cannot be reopened in rectification proceedings under section 22 of the U.P. Trade Tax Act, 1948. The rectification was therefore sustained and the Revenue's challenge failed.

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Issues: Whether mefron gas was correctly treated as a chemical taxable at 10% or as an accessory of refrigeration and air-conditioners taxable at 15%, and whether the rectification under section 22 of the U.P. Trade Tax Act, 1948 could be sustained.

Analysis: The commodity was found to be chloro-flouro hydrocarbon and, on that basis, to fall within the entry of chemical. The record did not establish that mefron gas was a different substance from chloro-flouro hydrocarbon, and the material placed before the assessing authority was insufficient to dislodge that finding. The Court also held that a disputed question of fact or a debatable point of law could not be raised in proceedings under section 22. The reliance on Notification No. 5764 dated 07.09.1981 was therefore not accepted.

Conclusion: The tax classification at 10% as chemical was upheld and the rectification under section 22 was sustained.

Final Conclusion: The revision failed and the Revenue's challenge to the appellate and tribunal orders was rejected.

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