TaxTMI 
TaxTMI 
1993 (11) TMI 222
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....stone out of which lime is produced is taxable at 10 per cent?" Pursuant to that direction a reference has been made. 2.. Facts on record, necessary to be recapitulated for disposal of the reference are as follows: M/s. Konark Hardware Mart (hereinafter referred to as "the assessee") deals with hardware, paints, lime, etc. During assessment for the assessment year 1980-81, the assessing officer found that the assessee had paid tax at 7 per cent on the sales of lime. He did not accept the assessee's plea that it was an unspecified item. He was of the view that lime comes out of limestone which is taxable at 10 per cent. But lime produced out of limestone is generally used for painting of buildings. It can be used as a paint, but not as mi....
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...., a question has been referred for opinion. 3.. There is no appearance on behalf of the assessee in spite of notice. Learned counsel for the Revenue submitted as follows: (i) Lime and limestone are one and the same thing and there is no perceptible difference between the two. (ii) Under the generic entry "minerals" against serial No. 63 of the list of goods liable to sales tax, limestone does appear like manganese, dolomite, fireclay, etc. (iii) When it has to be taxed under a specified item, there is no good ground to tax it under unclassified item. (iv) Limestone is included in mineral as stated in Stroud's Judicial Dictionary. 4.. The question referred to this Court consists of two parts. The first relates to whether lime is taxabl....
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....x v. Haji V.K. Hameed & Co. [1981] 47 STC 238 (Ker), it was observed while considering the question whether turpentine can be said to fall within the entry "paints, colours, lacquers and varnishes" that turpentine is, no doubt, used as a solvent thinner or dissolvent in paints and varnishes but it cannot by itself be applied to other substances for the purposes of imparting colour or shine. In Commissioner of Sales Tax v. Colour Chem. Limited [1968] 22 STC 90, the Bombay High Court observed that the term "paints" occurring in entry 39 of the Bombay Sales Tax Act, 1959, should be construed ejusdem generis with the words "lacquers and varnishes" occurring in the said entry. So construed, the entry was intended to apply to liquid substances, w....