TaxTMI 
TaxTMI 
2018 (7) TMI 837
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....sment, by levying 16% tax, on the said turnover, under Entry 18(ii) of Part C of I Schedule to the Act, treating the commodity as colour and pigments. 3. Aggrieved over the said assessment, the dealer has filed an appeal in A.P.No.159 of 2005, before the Appellate Assistant Commissioner (CT)-II, Chennai, on the ground that they had sold basic dyes and acid dyes only, which fall under Entry 16 of Part-C of First Schedule, taxable at 8%. The Appellate Authority, vide order, dated 01.06.2006, allowed the appeal, as follows:- "4. I heard the arguments of both the sides with connected records carefully. The only point for consideration in this appeal is whether the commodities sold by the appellants would fall under entry-16 of Part-C of First Schedule or under entry 18(ii) of Part-B of First Schedule. Entry 16 of Part C of First Schedule reads as follows: First sale 8% Dyes, that is to say (i) Acid dyes (ii) Alizarine (iii) Bases (iv) Basic dyes (v) Direct dyes (vi) Napthels (vii) Nylon dyes (viii) optical whitening agents (ix) Plastic dyes (x) Reactive dyes (xi) sulphur dyes (xii) Vat dyes. Entry 18(ii) of Part-E of First Schedule reads as follows: i. Pai....
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....ii) of Part-E of First Schedule. "Dye" is not a basic chemical but is is an intermediary chemical product which can be utilized as such, the legislature has grouped dyes of different kinds to be taxed at 8%. The appellants have sold Rhodamine, Auramine, Victoria blue, Methylene violet, Oil blue, oil green and Cro Scarlet. These items fit into the description of dyes as provided under entry 16 of Part C to First Schedule since what the appellants have sold are basic dyes and acid dyes. The scrutiny of copies purchase invoices filed by the Authorised Representative in support of his stand would indicate the Central Excise classification of the commodity under the tariff subheading 3204: 29-Synthetic organic Dyes. Therefore the commodities sold by the appellants are only dyes taxable at 8% under entry 16 of Part-C of first Schedule and the assessment order passed by assessing the sales turnover of the commodities at 16% is set aside. In fine, the appeal stands ALLOWED." 4. Thereafter, the appellate authority has revised the assessment and re-determined the taxable turnover at the rate of 8%. However, against the appellate order, the State has preferred an appeal in S.T.A.No.54....
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.... However he reversed his earlier stand and classified the said commodity under Entry 18 (ii) of Part C of First Schedule taxable at 16% as pigment and colours and passed a revised order to that effect by assessing the turnover of Rs. 7,52,965/- to tax at 16% which is impugned in this appeal. It is well settled by catena of cases of the Apex Court of the country that is interpreting the meaning of the words in taxing statues we should no be guided by their technical and scientific meaning alone but the terms should be understood in the matter in which merchants dealing with them and consumers using them generally understand. In other words they should be understood in the sense in which they are popularly understood by those who deal in them and who purchase and use them. The word pigment, paints, varnishes, dry colours, Turpentine oil etc., has been used in entry 18 of Part E of First Schedule. The dictionary meaning of the word "pigment" is any substance used for colouring that which gives colour to animal and vegetables tissues." Pigment brown, pigment caramine, pigment chrome yellow, pigment fast orange, pigment red etc, are used to convey colouring, by particular colour. ....
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....st Schedule when the product colours are specifically found in the statue book under Entry 18 (ii) and (iii) of Part A of 1st Schedule? 2. Whether the Tribunal is right in holding that the products are synthetic organic dyes falling under tariff 3204.09 of Central Excise classification and therefore the commodity are taxable at 8% under Entry 16 of Part C of 1st Schedule when the product can be used in the industry to add desired colours? 3. Whether the Tribunal is not erred in holding that colour & pigments are associated with paints and other allied products and the same are not liable to tax at 16% under Entry 18 (ii) & (iii) of Part E of 1st Schedule?" 6. Supporting the above, Mr.V.Haribabu, learned Additional Government Pleader (Taxes), submitted that sale of ammonia victoria blue, rhoda mine, methyl violet, oil blue, oil green and crown scarlet are nothing but colours. He further submitted that the Tribunal has failed to differentiate the commodity of colours & pigments and dyes & chemicals. He also submitted that the Tribunal has erred in holding that the commodity sold by the dealer/assessee is synthetic agro dyes and as such, it shall be treated as dyes and chemica....
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....ebster Dictionaries, "OXFORD DICTIONARY "dye: In "dye"-noun (mass noun) a natural or synthetic substance used to add a colour to or change the colour of something." "Pigment noun the natural colouring matter of animal or plant tissue. A substance used for colouring or painting, especially a dry powder, which when mixed with oil, water, or another medium constitutes a paint or ink." WEBSTER: "Dye-(di) v. dyed. Dye-ing v.t. 1.To fix a coor by soaking in liquid coloring matter. 2.To stain; tinge.- v.t. 3. To take or give color: This cloth dyes badly. See synonyms under STAIN.-n. A fluid or coloring matter used for dyeing; also, the color or hue so produced. According to the method of application, dyes are classified as substantive, or direct, when they color by simple immersion; adjective, or mordant, when a fixing agent is used; ingrain, or ice, when deposited by chemical reaction; vat, when applied in an alkali-soluble state and oxidized; and sulfur, when used in a sodiun sulfide bath followed by oxidation. Homophone : die.(OE deagian deag dye, color)" Pigment 1.Any of a class of finely powered, insoluble coloring matters suitable for making paints, enamels, oil ....
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....ce. In Godfrey v. Godfrey 106 NW 814, the Court defined 'perverse' as turned the wrong way, not right; distorted from the right; turned away or deviating from what is right, proper, correct etc. 27. The expression "perverse" has been defined by various dictionaries in the following manner: 1. Oxford Advanced Learner's Dictionary of Current English Sixth Edition PERVERSE:- Showing deliberate determination to behave in a way that most people think is wrong, unacceptable or unreasonable. 2. Longman Dictionary of Contemporary English - International Edition r PERVERSE: Deliberately departing from what is normal and reasonable. 3. The New Oxford Dictionary of English - 1998 Edition PERVERSE: Law (of a verdict) against the weight of evidence or the direction of the judge on a point of law. 4. New Webster's Dictionary of the English Language (Deluxe Encyclopedic Edition) PERVERSE: Purposely deviating from accepted or expected behavior or opinion; wicked or wayward; stubborn; cross or petulant. 5. Stroud's Judicial Dictionary of Words & Phrases, Fourth Edition PERVERSE: A perverse verdict may probably be defined as one that is not only against the weight o....
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....trageously defies logic as to suffer from the vice of irrationality incurring the blame of being perverse, then, the finding is rendered infirm in law." 16. In The General Manager (P) Punjab & Sind Bank v. Daya Singh reported in (2010) 11 SCC 233, at Paragraph 24, the Hon'ble Supreme Court, held as follows: "24. A perverse finding is one which is based on no evidence or one that no reasonable person would arrive at. This has been held by this Court long back in Triveni Rubber & Plastics v. CCE, AIR 1994 SC 1341. Unless it is found that some relevant evidence has not been considered or that certain inadmissible material has been taken into consideration the finding cannot be said to be perverse. The legal position in this behalf has been recently reiterated in Arilvelu v. State, 2009 (10) SCC 206. The decision of the High Court cannot therefore be sustained." 17. In S.R.Tiwari v. Union of India reported in 2013 (6) SCC 602, at Paragraph 30, the Hon'ble Supreme Court, held as follows: "30. The findings of fact recorded by a court can be held to be perverse if the findings have been arrived at by ignoring or excluding relevant material or by taking into consideration i....