1995 (9) TMI 343

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....2, issued by respondent No. 1 imposing tax on dhoop and agarbatti at the rate of 10 per cent. The petitioner has also prayed for a issue of a direction to the respondents not to levy tax at the rate of 10 per cent. The petitioner is a dealer in dhoop and agarbatti at Ferozepur and is registered under the Punjab General Sales Tax Act, 1948 (for short, "the Act"). Petitioner's grievance is tha....

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....upreme Court in Commissioner of Sales Tax, U.P. v. Indian Herbs Research and Supply Co. [1970] 25 STC 151 the word "perfumery" includes dhoop and agarbatti and, therefore, there was ample justification for taxing these goods at the rate of 10 per cent. The respondents have relied upon Government's notification dated December 24, 1975 and have asserted that the petitioner is liable to pay tax at th....

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....lso declared that the amendment shall be deemed to have come into force with retrospective effect. Thereafter, notification annexure P1 was issued on September 28, 1979, whereby entry 16 was amended and entry 16-A was added. The amended entry 16 and entry 16-A read as under?: "(16) Cosmetics and toilet goods excluding tooth-paste, tooth-powder, kumkum and soap. (16-A)?Perfumery including dho....

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....atter to induce any chemical reaction which results in fragrant odours being released from that substance. 'Dhoop' and 'dhoop-batti', therefore, fall within the category of 'perfume' under item No. 37 and their sales are liable to the higher rate of single point tax of one anna per rupee which is the tax declared in the notification and not the multipoint sales tax of only three pies in the rup....