1984 (1) TMI 287

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....an adhesive sold by the assessee under the name Fiksol falls under the entry under item 138 of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959, covering "dyes and chemicals" taxable at 8 per cent as contended by the revenue or at 4 per cent multi-point as contended by the assessee. In this case the assessee has sold the commodity called Fiksol-S. 69 and it claimed that this is cha....

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....y took the view that since the ingredients which went to make Fiksol-S. 69 are all chemicals, it should be taken to fall within the expression "dyes and chemicals" under item 138 of the First Schedule. The appellate authority relied on its own earlier decision in another case that vulcanising solution will come within the purview of "dyes and chemicals" under item 138 of the First Schedule. The....

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.... a due consideration of the matter, we are inclined to agree with the Tribunal. It is seen from the relevant literature that Fiksol-S. 69 is an all purpose adhesive used for binding various surfaces such as leather, rubber, wood, plastic, glass, ceramic, felt, canvas, stone, summica, metal, linoleum, etc. Though the adhesive has been made of certain ingredients which are in the form of chemicals, ....

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....icle to be qualified as "chemicals" within the meaning of entry 9 of Schedule II, Part A, to the Gujarat Sales Tax Act, 1969, it must be an intermediary chemical product which can be utilised as such for producing other finished products and that the word "chemicals" should normally be understood as a chemical which could be used as an intermediary chemical product and not as an "end-product". We ....