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Allahabad High Court · body

2003 DIGILAW 1313 (ALL)

Saurashtra Chemicals v. Commissioner of Sales Tax

2003-05-23

R.B.MISRA

body2003
R. B. MISRA, J. ( 1 ) THESE are three revisions have been preferred under Section 11 of U. P. Trade Act, 1948 (in short called "the Act") relating to the assessment years 1983-84, 1984-85 and 1985-86. Heard Sri Rajes Kumar, learned Counsel for the applicant-revisionist as well as Sri KM. Sahai, learned Standing Counsel for the revenue/commission trade tax/state Government. ( 2 ) THE brief facts necessary for adjudication are that appellant is a public limited company with its head office at Porbandar and sales depot at Kanpur. According to the appellant/revisionist, it deals in soda ash, soda caustic and soda bicarbonate, etc. The head office transfers the goods to the sales depot/appellant against form F and form XXXI. Goods transfer advices are issued by the head office in round figures. During the assessment year 1983-84, although the assessing authority accepted the gross turnover, but at the same time, enhanced the net turnover by admission of cartage disallowing form 3 Kha and lastly by taxing the sale of soda bicarb at the rate of 8 per cent. During the assessment years 1984-85 and 1985-86, the assessing authority accepted the gross turnover but the turnover of soda bicarb amounting to Rs. 12,45,439. 10 and rs. 21,15,308. 85 respectively was also assessed at the rate of 8 per cent treating the same as chemical. Three appeals were filed by the appellant against the said assessment orders before the learned Deputy Commissioner (Appeals), Sales Tax, all the three appeals were dismissed on common point. Feeling aggrieved with the aforesaid impugned orders, the appellant has filed the present three second appeals before this Tribunal. ( 3 ) SINCE the main dispute in all the three appeals is with regard to the taxability of soda bicarb, therefore these are being disposed of by this common judgment. ( 4 ) IT has been argued by the learned Counsel for the appellant that the lower authorities have erred in treating the soda bicarb as chemical and taxing the same at the rate of 8 per cent, while on the other hand it ought to have been taxed at the rate of 6 per cent, treating soda bicarb as medicine. ( 5 ) ON the other hand it has been argued by the learned Counsel for State/revenue that the applicants main factory situated at Porbandar, mainly manufactures chemical preparations. ( 5 ) ON the other hand it has been argued by the learned Counsel for State/revenue that the applicants main factory situated at Porbandar, mainly manufactures chemical preparations. Further that sodium bicarbonate produces carbon dioxide (CO2) gas which is mainly used for the prevention of fire-extinguishers. It is also used in baking powder, soft and cold-drinks and in cooking and the applicant had not obtained any medical licence under the "indian Drug Licence act" for the manufacture of medicine and that the appellant itself has collected a per cent as rate of tax treating the sodium bicarbonate as chemical, hence now the applicant is barred from treating the soda bicarb as medicine and lastly that the main use of soda bicarb is of chemical hence the lower, authorities have rightly treated soda bicarb as chemical and has rightly treated the soda bicarb at the rate of 8 per cent. ( 6 ) IN the present facts and circumstances the following questions of law have been raised for consideration : (i) Whether, in the facts and circumstances of the case, soda bicarb could be regarded as medicine or chemical ? (ii) Whether the nature of commodity could be determined by considering the nature of the buyers of those goods ? (iii) Whether the earlier judgments delivered in respect of the same item by two other Sales Tax tribunals were binding on the present Tribunal also, which decided the same question differently ? ( 7 ) THE learned Counsel for the applicant has drawn our attention towards the dictionary meaning of sodium bicarbonate as denned in the new Lexicon Websters Dictionary of English Language volume-II, 1987 ; which reads as under : (Nahc03) Sodium bicarbonate is a weak basic salt, which liberates CO2 (carbon dioxide) on heating and when combines with acids, it is used in baking powder, effervesce salt as an antacid, and in fire extinguishers. Uses : Sodium bicarbonate finds use in the preparation of baking powder, sedulity powder, effervescent drinks and fruits sales. It is taken internally as medicine for removal of acidity. The learned Counsel for the applicant has further drawn our attention towards "pharmacopoeia of India, Volume-II" wherein it has been mentioned that : sodium bicarbonate contains ; standards : Sodium bicarbonate contains not less the 99-0 per cent and not more than the equivalent of 100. It is taken internally as medicine for removal of acidity. The learned Counsel for the applicant has further drawn our attention towards "pharmacopoeia of India, Volume-II" wherein it has been mentioned that : sodium bicarbonate contains ; standards : Sodium bicarbonate contains not less the 99-0 per cent and not more than the equivalent of 100. 5 per cent of Nahco3, calculated with reference to the dried substance. On the contrary, it has been submitted on behalf of State/revenue that soda and soda ash has been defined in the following dictionaries in the following manner ; chambers : Soda : Sodium oxide, Sodium hydroxide (caustic soda), sodium carbonate, the soda of commerce (in powder form, anhydrous, soda ash in crystals with water of crystallisation washing-soda) sodium bicarbonate (baking soda ). Oxide : One of the components of sodium in common use, especially sodium carbonate or bicarbonate. The soda and soda ash includes sodium bicarbonate. Further that if the goods are capable of more than one use, then the primary use will have to be seen, while determining the taxability of goods. Further that the word "goods" must be construed not in the technical sense but as understood in common parlance. ( 8 ) IN the present revisions the dispute is whether soda bicarbonate being medicine falls under the entry of "medicines and pharmaceutical preparations including insecticides and pesticides" and liable to tax at the rate of 6 per cent or falls under the entry of "chemicals of all kinds including fuel gases" liable to tax at the rate of 8 per cent. The relevant notifications are as follows : (a ). . . preparations including insecticides and pesticides 6 per cent M or I. (b) S. T.-2-5784/x--10 (1)-80--U. P. Act 15/48--Order-81 dated September 7, 1981 SI. No. 21 chemicals of all kinds including fuel gases at the rate of 8 per cent. . . M or I. The claim of the applicant revisionist/dealer is that soda bicarbonate Nahco3 is a weak basic salt and when it reacts with acid it forms carbon dioxide, therefore, it is antacid. It is used to cure and provide relief from acidity. It is sold in the market in retail as one of a marketable product in the name of Eno. The composition of "eno" shows that it is sodium bicarbonate and just to give taste flavour, lemon, etc. , are mixed. English Language Vol. It is used to cure and provide relief from acidity. It is sold in the market in retail as one of a marketable product in the name of Eno. The composition of "eno" shows that it is sodium bicarbonate and just to give taste flavour, lemon, etc. , are mixed. English Language Vol. II, 1987 defines sodium bicarbonate as follows : (c) Sodium bicarbonate is a weak basic salt which liberates CO2 (carbon dioxide) on heating and when combines with acids, it is used in baking powder, effervesce, salt as an antacide and in fire extinguishers. Uses : Sodium bicarbonate finds use in preparation of baking powder, sedulity powder, effervescent drinks and fruits sales. It is taken internally as a medicine for removal of acidity. (d) Websters New Words Dictionary defines as : a white, crystalline compound, Nahc03", used in baking powder as an antacid, etc. ( 9 ) IT has been submitted on behalf of applicant-revisionist/ dealer that the chemical is a generic word having a wider meaning. It includes several medicines. Medicines are generally the composition of various chemicals, therefore, submission is that if sodium bicarbonate being a medicine, having a characteristic of the medicine, even if chemical falls under the entry of medicine. ( 10 ) IT was contended on behalf of the applicant-revisionist/ dealer that in Har Narian Pursottam dass v. Commissioner, Sales Tax, Uttar Pradesh reported in [1971 ]28 stc77 (All ) and in the case of Commissioner, Sales Tax v. Ram Babu and Company reported in [1971] 28 STC81 (All ) has held that the specific entry excludes general entry. The question was whether Tinopal falls under the entry of chemicals of all kinds or washing material. The Division Bench of High Court as held follows :-The fact that the whitening brought about by Tinopal is a chemical process is of no consequence because that is not the criterion upon which entries in the notifications under the U. P. Sales Tax act are to be interpreted. If an article falls in a specific classification of washing materials it would cease to belong to the general category of chemicals. Since in the assessment years 1958-59 and 1959-60 there was no separate classification of washing material, Tinopal would be covered by the entry chemicals of all kinds. If an article falls in a specific classification of washing materials it would cease to belong to the general category of chemicals. Since in the assessment years 1958-59 and 1959-60 there was no separate classification of washing material, Tinopal would be covered by the entry chemicals of all kinds. ( 11 ) AS referred by on behalf of applicant-revisionist/dealer that in the case of Commissioner of sales Tax, U. P. v. Chhotey Lal Parameshwaer Lal reported in 1979 UPTC 512, the question was whether the soda sold by the assessee falls under the entry of washing materials or chemicals. The High Court has held that "soda is undoubtedly a chemical in the technical sense, but as it is normally used as material for washing purpose, it should be classified as such". ( 12 ) AS submitted on behalf of applicant-revisionist/dealer that in the case of Rashtra Deep laboratory v. Commissioner of Sales Tax, U. P. reported in, [1983] 53 STC 419 (All ), question was whether water for injection is liable to tax as a medicine or as an unclassified item. This Court held water in injection falling under entry of medicine. This Court has held as follows : the concept of medicine is not static. It is a changing concept linked with the advancing human knowledge and its endeavour to alleviate human suffering. It is also changing with the change in social thinking of a community with a view to solve its problems. Thus, viewed, the term medicine cannot be confined within the traditional concept of an article which, by itself, is enough to cure a human ailment. This Court has accepted departure from the traditional concept of medicine for purposes of the U. P. Sales Tax Act when it held that tartaric acid which, in the broader sense, is a chemical, is medicine (See Commissioner of Sales Tax, U. P. v. Fadral chemical Works Ltd. [1983] 53 STC 425 (All.) [app. ] : 1980 UPTC 552) and is taxable as a medicine and not as a chemical. ( 13 ) AS indicated the attention of the court has been invited on behalf of the applicant-revisionist on the observations of Commissioner of Sales Tax, U. P. v. Fadral Chemical Works Ltd. [1983] 53 STC 425 (All.) [app. ] ; 1980 UPTC 552 where this Court held tartaric acid as medicine and not as a chemical. ( 13 ) AS indicated the attention of the court has been invited on behalf of the applicant-revisionist on the observations of Commissioner of Sales Tax, U. P. v. Fadral Chemical Works Ltd. [1983] 53 STC 425 (All.) [app. ] ; 1980 UPTC 552 where this Court held tartaric acid as medicine and not as a chemical. Now instead of referring to the dictionary meaning of this substance, it would be more purposeful if the sense in which it is understood in the medical world is considered. In British pharmaceutical Codex (1973 Edition) issued by the authority of the Pharmaceutical Society of great Britain, the composition of tartaric acid is described as under : tartaric acid is (+)--tartaric acid and may be obtained from argol, the crude potassium hydrogen tartrate deposited during the fermentation of grape-juice. As for its action and uses it is stated : tartaric acid is a saline purgative which has actions similar to those described under sodium potassium tartrate. It is a constituent of effervescent powders and granules and of cooling drinks and should be taken well-diluted with water (page 494 ). Sodium potassium tartrate has been described as a saline purgative ; actions and uses of it are described as magnesium sulphate. It causes a watery evacuation of the bowel without producing irritation (page 461 ). The uses of magnesium sulphate are described as : magnesium sulphate is a saline purgtive. Such purgatives are not readily absorbed from the intestine. When taken by mouth in dilute solution they reduce the normal absorption of water from the intestine, with the result that the bulky fluid contents distend the bowel, active reflex peristalsis is excited, and evacuation of the contents of the intestine occurs in one to two hours. Saline purgatives are often given in habitual constipation due to deficient peristalsis. It would be seen, therefore, that according to this treatise tartaric acid is a saline purgative and is administered well-diluted with water and the effect is to relieve constipation. I do not think that after the above actions and use of tartaric acid any doubt can be entertained that tartaric acid is not a medicine. It may be a chemical which word is a wider import but when there is specific entry about it, it is the special entry which is to cover the levy and rate of tax and not the general entry. It may be a chemical which word is a wider import but when there is specific entry about it, it is the special entry which is to cover the levy and rate of tax and not the general entry. ( 14 ) IN reference to the following case the applicant-revisionist stated that in 1986 UPTC 367 (Commissioner of Sales Tax v. Balsara Hygine Products Ltd.) "odomos" was held to be a preventive and medicine. In , [1986] 61 STC 273 (All ) (Commissioner of sales Tax v. Madan Mohan Sri Kishan) "posta-budi" was treated as medicine wherein [1980] 45 STC 455 (All ) (Commissioner of Sales Tax v. Agarwal agencies) "adhesive" was held not chemical also. In , [1979] 43 STC 216 (All ) (Commissioner of Sales Tax, U. P. Lucknow v. Krishna Chemicals) "kalmi sora" was held not chemical. ( 15 ) IT has been further argued on behalf of the State/revenue that prior to March 1, 1962, soda-ash was taxable as chemical, but vide Notification No. ST-4907/x--900 (4)-61, dated march 1, 1962, soda ash was excluded from the entry "chemicals of all kinds" and prior to April 1, 1966, caustic soda was taxable as chemical. However with effect from April 1, 1966, caustic soda and soda ash both were excluded from the entry "chemical of all kinds" vide Notification no. ST-8301/x-1008 (64)-1964, dated April 1, 1966, with effect from September 7, 1981, a separate entry was added for "caustic soda" and "soda ash" vide Notification No. S. T.-2-5784/x--10 (1)--80 U. P. Act 15/ 48-Order-81, dated September 7, 1981 and the same has been made taxable at the rate of 8 per cent hence the lower authorities have rightly taxed soda bicarb at the rate of 8 per cent. ( 16 ) ADMITTEDLY the applicant-revisionist herein deals in soda ash, soda caustic and soda bicarb, etc. So far as soda bicarb is concerned, it is also commonly known as baking powder and is used in cooking. It will not be out of place to mention that soda bicarb is also used at a large scale in the preparation of soft and cold drinks. Further that sodium bicarbonate produces carbon dioxide (Co2) gas, which is used mainly for the prevention of fire in fire-extinguishers. It will not be out of place to mention that soda bicarb is also used at a large scale in the preparation of soft and cold drinks. Further that sodium bicarbonate produces carbon dioxide (Co2) gas, which is used mainly for the prevention of fire in fire-extinguishers. ( 17 ) IT is noteworthy that in the case of Avadh Sugar Mills Ltd. v. Sales Tax Officer, Sitapur [1973] 31 STC 469 : 1973 UPTC 679 (SC), it has been observed by Supreme Court that in finding out the meaning of the term "oil-seeds" found in the sales tax law, dictionaries are not to be referred but meaning ascribed to that term in commercial parlance is to be found. It was further observed that groundnut is a seed as it germinates and groundnut is mostly used for the manufacture of groundnut oil, hence it is oil-seed. Again in the case of Ramavatar Budhaiprasad v. Assistant Sales Tax Officer, Akola [1961] 12 STC 286, the Supreme Court observed that the words must be construed not in any technical sense nor from the botanical point of view but as understood in common parlance. ( 18 ) IT will not be out of place to mention that in the case of Express Dairy Company Limited, calcutta v. Assessing Authority, Hissar [1971 ]28 STC37 (Pandh ), the supreme Court has held that if those goods are capable of more than one use, then the primary use will have to been seen while determining the taxability of the goods and in the case of Indo international Industries v. Commissioner of Sales Tax, Uttar Pradesh [1981] 47 STC 359 it was observed by Supreme Court that in the absence of any definition, being given in the enactment the meaning of the term in common parlance or commercial parlance, has to be adopted. ( 19 ) IN the case of Industrial Chemical Corporation v. Commissioner of Sales Tax, U. P. [1972] 30 stc 172 (All.) ; [1972] UPTC 310 where the assessee carried on business in paints, marble chips, white cement and coal-tar, and also dealt in calcium carbide, the assessing authority assessed the calcium carbide as chemical which was disputed by the assessee and it was held by high Court that calcium carbide was taxable as chemical. It will not be out of place to mention that in the case of Indo International Industries v. Commissioner of Sales Tax air 1981 SC 1079 , 1981 (8) ELT 325 (SC ), 1982 (2 )Karlj181 , 1981 (1 )SCALE582 , (1981 )2 SCC528 , [1981 ]3 SCR294 , [1981 ]47 STC359 (SC ), 1981 (13)UJ372 (SC ) a question arose as to whether the hypodermic clinical syringes were glasswares. It was observed by Supreme Court that though the dictionary meaning of the expression "glassware" is "articles made of glass" but in a commercial sense glassware could never comprise articles like clinical syringes, thermometers, lactometers and the likewise, which have a specialised significance and utility. A general merchant dealing in "glassware" does not ordinarily deal in such articles which although made of gases are normally available in medical stores and it was held by Supreme Court that the clinical syringes manufactured and sold by the assessee could not be considered as "glasswares" but fall under "hospital equipment". ( 20 ) IN the case of Bishambhar Dayal Shri Niwas v. Commissioner of Sales Tax, Uttar Pradesh [1963 ]14 STC184 (All ), the assessee was manufacturer of glassware and a dealer in glassware, zinc oxide and red lead for that the assessee imported zinc-oxide and red lead and used some of them in manufacturing glasses and sold that the rest as part of his business to glass manufacturers. On the question whether the zinc oxide and red lead sold by the assessee should be treated as "dyes and colours" or as "chemicals", it was held by High Court that if an article is sold as an article belonging to one category, it must be treated as a sale of an article of that category even though it answers the description of another category. It was further observed that if an article is capable of being used as a chemical and also as a colour, the answer to the question what was sold would depend upon how it was treated by the vendor. It was further observed that if an article is capable of being used as a chemical and also as a colour, the answer to the question what was sold would depend upon how it was treated by the vendor. If he stocked and sold it as a chemical, it would be a sale of chemical and it was held that merely because a certain article is used along with a colouring matter in order to fix the colour in the glass, it does not become a colour and zinc oxide and red lead sold by the assessee fall under the head "chemicals of all kinds". ( 21 ) THE learned Counsel for the applicant has drawn our attention on the case of Commissioner of Sales Tax, U. P. v. Khandelwal Agencies, Gangapur Bareilly (Second Appeals Nos. 417 of 1983, 418 of 1983 and 656 of 1983 decided on August 23, 1986 by Sri S. Saksena, Member, sales Tax Tribunal, Bareilly Bench-I, Bareilly) and the case of Commissioner Sales Tax, U. P. v. Kataria Trading Company Generalganj Kanpur (Second Appeal No. 411 of 1983 decided on september 22, 1989 by Division Bench of Sales Tax Tribunal, Kanpur ). From the perusal of the case of Commissioner of Sales Tax, U. P. v. Khandelwal Agencies, Gangapur Bareilly (Second appeals Nos. 417 of 1983, 418 of 1983 and 656 of 1983 decided on August 23, 1986), it is apparent that the case was decided in favour of the assessee on the ground that in the case of that very assessee for the assessment year 1971-72, the Tribunal had held Soda bicarbonate as a medicine and in the year 1983-84 the revenue had itself treated Soda bicarbonate as a medicine. It will not be out of place to mention that Bareilly Bench had relied on the case of Commissioner of Sales Tax, U. P. v. Gramodyog Karyalaya [1979j 44 STC 270 (All.) : (1979) UPTC 884. In the said case, the taxability of "jari bootis" was the subject-matter before High Court and it was observed by High Court that herbs are valued and sold primarily for their medicinal qualities as recognised in the ayurvedic system of medicine. In the said case, the taxability of "jari bootis" was the subject-matter before High Court and it was observed by High Court that herbs are valued and sold primarily for their medicinal qualities as recognised in the ayurvedic system of medicine. So far as the case of Commissioner of Sales Tax v. Kataria Trading Company (Second Appeal No. 411 of 1983 decided on September 22, 1989)is concerned, we find that in this case, the Tribunal has rightly mentioned that the Sodium bicarbonate amounting to Rs. 6,36,441. 59 was meant for medical use only and the same was sold to the medicine dealers. ( 22 ) IT has also been argued on behalf of applicant-revisionist that no evidence was produced to prove that sodium bicarbonate was sold for medical use or was sold only to medicine-dealers. It will not be out of place to mention that in reference to some photostat copies of the bills produced on behalf of the applicant revisionist, it may be noticed that the applicant had mainly sold articles to M/s Pratap Chemicals, Dada Nagar, Kanpur, M/s. Atherton Mills, Anwarganj, kanpur, M/s. Muir Mills Parade, Kanpur, M/s. Janta Udyog, Kidwai Nagar, Kanpur and M/s. International Silicate and Detergents, Kanpur, which clearly indicate that the applicant had mainly dealt with the firms which required chemicals and none of these firms/companies could be termed as "chemist", which supports the contention of the revenue that the applicant revisionist mainly deals with "chemical". ( 23 ) IT has been noted by the Tribunal that the applicant was asked to submit the names of shop/dealers to whom the applicant-revisionist had sold soda bicarb to ascertain as to whom the applicant had mainly sold soda bicarb to the chemical-shop/factory, or to the medicine-dealers, but nothing was shown for and on behalf of the applicant. As noted by the Tribunal that the applicant-revisionist had not shown or filed any copy to prove that the applicant had sold soda bicarb to any medicine-shop or to any druggist. ( 24 ) IN [1987] 66 STC 250 ; 1987 UPTC 397 (British India Corporation Limited v. Commissioner, Sales Tax, U. P.) the High Court (Full Bench) has observed in (at page 252) para 7 as below : the question formulated, in our opinion, does not require any further arguments. ( 24 ) IN [1987] 66 STC 250 ; 1987 UPTC 397 (British India Corporation Limited v. Commissioner, Sales Tax, U. P.) the High Court (Full Bench) has observed in (at page 252) para 7 as below : the question formulated, in our opinion, does not require any further arguments. The Tribunal has reached the conclusion on the facts and circumstances before it, that the articles like woolen pullovers and cardigans are considered as hosiery in common parlance and commercial circle. That is a finding of fact binding on this Court in the revision under Section 11 of the U. P. Sales tax Act. Under the said section, revision lies only on a question of law, as it is evident from sub-sections (4) and (8) thereof. ( 25 ) IN respect of submissions of applicant-revisionist soda bicarb manufacture is being sold as "eno", it is remarkable to note that lemon Eno is a ayurvedic property which contains svarjiksara (Shudh) 2. 91 g. , Nimbukamlam (Shushkam) 2. 04 g. , flavours and sweetening agent added contain permitted colours tartrazine and brilliant blue FCF q. s. and it does not soda bicarbonate directly. ( 26 ) IN view of the above observation the finding of fact recorded by the "tribunal" does not require for any interference and soda bicarbonate and other material prepared by the applicant-revisionist has rightly been treated to fall under entry of chemical and is to be taxed at the rate of 8 per cent at the point of manufacture of chemical. ( 27 ) AS regards the taxability of soda bicarb sold by the assessee is concerned, in view of the discussions made above, we are of the opinion that soda bicarb is taxable at the rate of 8 per cent. Learned counsel for the appellant further argued that the assessing authority did not give proper opportunity to file form 3 Kha hence the assessee could not file the same in time at the time of assessment. However, subsequently when the assessee received three forms 3 Kha, the assessee filed the same before the learned Deputy Commissioner (Appeals), Sales Tax, failed to consider the same and decided the case on merits. We have gone through the file of first appeal. However, subsequently when the assessee received three forms 3 Kha, the assessee filed the same before the learned Deputy Commissioner (Appeals), Sales Tax, failed to consider the same and decided the case on merits. We have gone through the file of first appeal. From the perusal of file, it is apparent that requisite forms 3 Kha are on record and no order has been passed by the learned Deputy Commissioner (Appeals), Sales Tax, in respect of forms 3 Kha. Since the learned Deputy Commissioner (Appeal), Sales Tax, has not passed any order on this point, we feel that these papers are necessary for just and proper decision of the case. So far as the question of interest is concerned, it will be borne by the decision on the acceptance of forms 3 Kha. In view of the aforesaid facts and circumstances of the case it becomes necessary that the assessing authority should examine forms 3 Kha filed before the learned Deputy Commissioner (Appeals), Sales Tax, and then he should record a finding thereon. Consequently the case requires re-hearing and therefore, the case is liable to be remanded to the assessing authority for fresh assessment after examining the papers in accordance with law and the present appeal is liable to be allowed. Second Appeal No. 333 of 1990 (1984-85)For the assessment year 1984-85, the appellant had disclosed taxable turnover at Rs. 95,95,100. 42 and had admitted tax liability of Rs. 7,37,856. 18. The assessing authority accepted the taxable turnover of the appellant ; but the turnover of soda bicarb amounting to Rs. 12,45,439. 10 was accepted at the rate of 8 per cent treating the same as chemical (while the appellant had claimed the taxability at the rate of 6 per cent treating the same as medicine ). The assessing authority framed the assessment order dated December 16, 1988 under Rule 41 (7 ). The only dispute in the present appeal is in respect of rate of tax on soda bicarb, sold by the appellant. In view of the discussions made above, in our opinion the "soda bicarb" sold by the appellant is chemical, taxable at the rate of 8 per cent and the present appeal is liable to be dismissed. Second Appeal No. 567 of 1990 (1985-86)For the assessment year 1985-86, the appellant had disclosed taxable turnover at Rs. 91,65,290. 44 and had admitted tax liability of Rs. 7,20,262. 14. Second Appeal No. 567 of 1990 (1985-86)For the assessment year 1985-86, the appellant had disclosed taxable turnover at Rs. 91,65,290. 44 and had admitted tax liability of Rs. 7,20,262. 14. The assessing authority accepted the taxable turnover of "soda bicarb" of Rs. 21,15,308. 80 was assessed at the rate of 8 per cent treating the same as chemical (while the appellant had claimed the taxability on "soda bicarb" at the rate of 6 per cent treating the same as medicine ). The only question in the present appeal is with regard to the taxability of "soda bicarb", sold by the appellant. In view of the discussions made above, we are of the opinion that "soda bicarb" sold by the appellant is chemical, taxable at the rate of 8 per cent and the present appeal is liable to be dismissed. ORDER appeal No. 263 of 1989 is allowed. The order dated February 3, 1989 passed by Deputy commissioner (Appeal), Sales Tax, is set aside and the case is remanded to the assessing authority for passing a fresh assessment order in the light of directions given in the judgment according to law. Appeals Nos. 333 of 1990 and 568 of 1990 are hereby dismissed. In view of the above observation the trade tax revision is dismissed and the view and decision taken by the Trade Tax Tribunal are affirmed and the questions of law are dealt with accordingly. . .