1970 (4) TMI 129

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.... the assessment years 1959-60 and 1960-61 they sold quantities of groundnut oil set out in the table below to the Hindustan Lever Ltd.:   ----------------------------------------------------------------------------   C.A. Name of Period of Value of   No. respondent sale groundnut oil   ---------------------------------------------------------------------------   2282 R.N. Krishnaswami Naidu & Sons 1959-60 Rs. 3,73,229.06   2283 A.S. Arunachalam Chettiar 1959-60 " 5,14,106.01   2284 K. Mummudi Chettiar and Co. 1960-61 " 10,27,939.32   2285 K.S. Mohammed Ghani Rowther 1959-60 " 2,03,709.96   2286 V. Krishna Chettiar and Bros. 1960-61 " 2,48,445.95 2287 V.N.M.A. Rajendra N....

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....tax payable by a dealer in respect of any sale of goods mentioned in the First Schedule by such dealer to another for use by the latter as component part of any other goods mentioned in that Schedule, which he intends to manufacture inside the State, for sale shall be at the rate of only one and a half per cent. of the turnover relating to such sale:.... Explanation.-For the purposes of this sub-section, component part means an article which forms an identifiable constituent of the finished product and which along with others goes to make up the finished product."   The First Schedule to the Act contains a large number of entries. The entries material at the relevant time were entry 20 "All vegetable oils", and entry 45 "Vegetabl....

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....ers with a view to detect adulteration in other products, such as ghee, etc., by the mixture of vanaspati; and that groundnut oil was an identifiable component part of vanaspati manufactured by the company. He further stated that the presence of the three oils mixed in the manufacture of vanaspati can be identified by carrying out three tests- (1) Baudouin test for detecting the presence of sesame oil, (2) Halphen test for detecting the presence of cotton-seed oil; and (3) Bellier test for detecting the presence of groundnut oil. No evidence contradicting the statements of Mr. Mahadevan was laid before the taxing authorities. It was, however, urged on behalf of the State that an article is a component part within the meaning of ....