2006 (7) TMI 623

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....hether it falls under "lime and dehydrated lime" taxable at the reduced rate of 2.5 per cent under entry 28 of the Second Schedule of Notification S.R.O. No. 1728/93 as claimed by the petitioner. We have heard Dr. K.B. Muhamed Kutty, learned Senior Counsel appearing for the petitioner and the learned Special Government Pleader appearing for the respondent. The petitioner is engaged in the manufacture and sale of bleaching powder. The lion share of the production, according to the petitioner, was sold to Kerala Water Authority for treatment of water supplied for drinking purpose. According to the petitioner, the item is essentially made of lime, though not lime as such and, therefore, the same is entitled to the concessional rate ....

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....er can be identified as lime pure and simple. In the course of manufacturing, it obviously undergoes a change involving loss of identity of lime and what emerges is a new product with different odour and characteristics. In fact, the chlorine content is what gives it the capacity to act as a disinfecting agent. In this view of the matter, we are in complete agreement with the finding of the Tribunal that bleaching powder cannot be treated as lime or dehydrated lime within the meaning of the notification above referred, entitling the petitioner for concessional rate of tax on its sale. The next question raised is whether the item can be treated as a chemical falling under entry 29 of the First Schedule to the KGST Act. In this connection, we....