2009 (3) TMI 940

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.... 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 of ethylene oxide brought from outsid....

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....aring 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 course of sterilisation of goods, there i....

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....r 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 for deduction in the determination of taxable tu....

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....s 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 sterilisation, the gas is released to air after neutralis....