1964 (8) TMI 51

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....chedule of Madras Act I of 1959, read thus: "Wattle bark including dyeing and tanning materials-at the point of last purchase in the State-at 3 per cent." After 1st October, 1960, this item was amended as: "Wattle bark, avaram bark, konnam bark, wattle extract, quobracho and chestnut extract-at the point of last purchase in the State-at 1 per cent." It is common ground that the assessee sold the above quantity of myrobalam to tanners in the State. The view of the department was that since myrobalam could also be used for medicinal purposes and also for making of ink, it could not come under the aforesaid description for single point levy, as it was before 1st October, 1960. The Tribunal, to whom the assessee appealed, was also of the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....w of the Allahabad High Court was that if an article was capable of being used as a chemical and also as a colour, the answer to the question what he sold, would depend upon how it was treated by the vendor. If he stocked and sold it as a chemical, it would be a chemical sold by him and more so if it was bought by the vendee also as such. In the present case there is no doubt that tanning is one of the chief uses of myrobalam, and that the seller as well as the buyer treated it as such. Seeing that nearly 2 lakhs worth of the stuff were sold in one year, it could not certainly be for medicinal purposes because it is well known that it is used only in small quantities in the preparation of Ayurvedic medicines; nor is it suggested that any of....