1991 (7) TMI 344

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....relating to the assessment years 1978-79 and 1979-80 which have been consolidated and disposed of by a common order by the Tamil Nadu Sales Tax Appellate Tribunal (Main Bench), Madras, the only issue which now survives for our consideration is whether "heat treatment salts" would fall under entry 138 of the First Schedule and are to be taxed at 8 per cent or would be covered by section 3(1) of the....

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....up the penetration of carbon without altering the chemical reaction. The salt also assists in removing certain impurities from the bath which tend to inhibit the absorption of carbon by the steel. On the basis of the literature and the properties of "heat treatment salt which is intended to produce a chemical effect on metal, the Tribunal held that the salt could only be classified under entry 138....

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.... is considered by the trade in common trade parlance also as falling within the description of "chemical". The observations of the assessing authority and the Tribunal, based on the literature on the subject, to the effect that the heat treatment salt is only an intermediary produce which is used for carburising the finished metal articles also go to establish that the salt would only qualify as a....