2009 (3) TMI 940

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....CHANDRAN NAIR J.-The question raised in the sales tax revision filed by the assessee is whether the Tribunal was justified in sustaining the assessment on the value of ethylene oxide used in sterilisation of goods for others. The assessee is engaged in sterilisation of goods with ethylene oxide. In the course of assessment for the year 2003-04 the assessing officer noticed that substantial value o....

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....tioner and the Government Pleader appearing for the respondent. The counsel for the petitioner has relied on the decision of this court in Deputy Commissioner of Sales Tax (Law), Board of Revenue (Taxes), Ernakulam v. M.K. Velu [1993] 89 STC 40 and that of the Patna High Court in Pest Control India Ltd. v. Union of India [1989] 75 STC 188 and contended that since ethylene oxide is lost in the c....

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.... Fifth Schedule. (b) In the case of transfer of goods involved in the execution of works contract (where the transfer is not in the form of goods but in some other form) specified in the Fourth Schedule, at the rate specified against such contract in the said Schedule." Besides the above, section 5C(1)(c)(iii) provides for cost of consumables used in the execution of works contract eligible ....

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....ent in court explained the sterilisation process as one involving the use of a compact airtight room wherein the goods to be sterilised in packed form are exposed to ethylene oxide for around six hours and then the said gas is allowed to escape after mixing with carbon dioxide at higher levels through chimney. Ethylene oxide is a toxic gas which is highly inflammable. After the duration of sterili....