State of Tamil Nadu vs Synthokam Industries

Thanikkachalam, J.—The State is the petitioner herein, the only point that arises for consideration in this revision is whether adhesives in

question are chemicals. The Tribunal held that adhesives in question cannot be treated as chemicals. Accordingly the Tribunal directed levy of tax

at 4 per cent. This view was taken by the Tribunal, by following an earlier order of its own, on this point. A similar question came up for

consideration before this Court in (State of Tamil Nadu represented by the Deputy Commissioner (C.T.), Madras South Division, Madras v.

Hihard Products, Madras-44), T.C. No. 1430 of 1982, dated September 26, 1991, wherein this Court dismissed the tax case preferred by the

department, by confirming the order passed by the Tribunal, which held that adhesives are not chemicals. Accordingly, we uphold the order

passed by the Tribunal in levying tax at 4 per cent, by not treating the adhesives as chemical. In that view of the matter, this tax case (revision) filed

by the department is dismissed. No costs.