JUDGMENT
Rajes Kumar, J.
1. These four revisions under Section 11 of U.P. Trade Tax Act (hereinafter referred to as “Act”) are directed against the order of Tribunal dated 12th May, 1998 for the assessment years 1986-87, 87-88, 88-89 and 89-90.
2. At the instance of the revenue, in all the four revisions following question has been raised:
Whether on the facts and in the circumstances of the case, the Trade Tax Tribunal was legally justified to hold that lime stone is taxable under the category of mineral despite the fact that lime stone is classified in the notification No. ST-II-5785/X-10(1)/80, dated 7.9.81 taxable on the point of sale to consumer?
3. Brief facts of the case are that the dealer/opposite party (hereinafter referred to as “Dealer”) established a new unit for the manufacturing of lime. Lime stone was the raw material for the manufacturing of lime. Being the new unit, dealer claimed the exemption on the turn over of manufactured product, namely, lime. The unit was treated as new unit and an eligibility certificate No. 4775 dated 02.11.1991 was issued granting exemption from 27.07.1987 to 04.04.1992. In view of the eligibility certificate, assessing authority granted exemption on the turn over of lime from 27.07.1987 for the assessment year 1987-88 and for the assessment year 1988-89 and 1989-90. However, tax was levied on the turn over of lime in the assessment year 1986-87 because for the said period, exemption was not granted under Section 4-A of the Act. In all the aforesaid assessment years, dealer had purchased lime stone from unregistered dealer. Assessing authority levied the tax on the purchases of lime stone made from unregistered dealer under Section 3-AAAA of the Act. Assessing authority was of the view that the lime stone was classified under notification No. ST-II-5785/X-10(1)/80-U.P. Act XV/48-Order-81, dated 07.09.1981 under the Entry “Ramraj, Geru, surkhi, sand, lime, bajri, marble-chips, moram, gitti, kankar, stone-ballast, stone and articles of stone except of glazed stone” liable to tax at the point of sale to consumer. The claim of the dealer was that the lime stone was mineral and, therefore, liable to tax at the point of manufacturer and importer under notification No. ST-II-5785/X-10(1)-80-U.P. Act XV/48-Order-81, dated 07.09.1981 “All kinds of mineral, ores, metals, scraps and alloy including sheets and circles” thus, it was not liable to tax under Section 3-AAAA of the Act. The view of the assessing authority was upheld in appeals. Tribunal by the impugned order has accepted the plea of the dealer and held lime stone as mineral relying upon the dictionary meaning of lime stone and the decision of this Court in the case of Commissioner of Sales Tax v. Chela Ram Tulsidas reported in 1980 UPTC, 1238. In this case, multani mitti has been held as mineral. In the case of Commissioner of Sales Tax v. Ajanta Tiles reported in 45 STC, 454, Dolomite has been held as mineral. In the case of Mineral Sales Corporation v. Commissioner of Sales Tax reported in 46 STC, 208, Emery powder, Dolomite powder, Silica sand, Soap-stone powder and Alumina been held as mineral.
4. Heard learned Counsel for the parties.
5. Learned Standing Counsel submitted that under notification No. ST-II-5785/X-10(1)-80-U.P. Act XV/48-Order-81, 07.09.1981 lime and stone both are classified and lime stone is covered under both the items. He submitted that even if lime stone may be a mineral but being specifically classified, it is covered under the notification No. ST-II-5785/X-10(1)-80-U.P. Act XV/48-Order-81, 07.09.1981 and being liable to tax at the point of sale to consumer under the aforesaid notification the purchases made from unregistered dealer were rightly assessed to tax under Section 3-AAAA of the Act. Learned Counsel for the dealer made the following submissions:
Under notification No. ST-II-5785/X-10(1)-80-U.P. Act XV/48-Order-81, 07.09.1981 lime is notified and not lime stone. He submitted that lime stone is different to lime and stone and known in commercial sense as raw material used in the manufacturing of lime. Lime stone is not covered under the stone. Under the Entry of the notification No. ST-II-5785/X-10(1)-80-U.P. Act XV/48-Order-81, 07.09.1981, stone is to be considered as hard stone in the form of boulders etc. but the lime stone is a soft stone. It is not in a boulder form or grit or in any other form akin to it. In common parlance lime stone is not known as stone;
6. Having heard learned Counsel for the parties, I have perused the order of the Tribunal and the authorities below.
7. It is useful to refer the relevant entries of notification No. ST-II-5785/X-10(1)-80-U.P. Act XV/48-Order-81, 07.09.1981:
Sl. No. 3 Description of goods Point of tax Rate of tax
3. All kinds of minerals, ores, M or I 4%
metals, scraps and alloys
including sheets and circles used
in the manufacture of
brasswares....
40. Ramraj, geru, surkhi, sand, lime, Sale to 6%
bajri, marble-chips, moram, consumer
gitti, kankar, stone-ballast, stone
and articles of stone except of
glazed stone.
8. Lime stone is not defined under the statute. Therefore, the dictionary meaning of the word "lime" and "lime stone" are to be considered to understand the commodity.
9. The definition of word "Lime", "Lime Stone" and "Mineral" as defined in the various dictionaries are as follows:
(LIME STONE)
As per Shorter Oxford English Dictionary
A sedimentary rocks composed chiefly of calcium carbonate, which yields lime when calcium is used as a building material and in the making of cement, a species or (formerly) a piece of this rock LME, B Atrail or adj. Made or consisting of lime stone. Lithograph lime stone, millotte lime stone, lime stone fern lime stone polyploidy.”
Chambers’ Twentieth Century Dictionary
A sedimentary rock of calcium corborate some times with much dolomite.
Random House Dictionary
Lime-stone, any stone consisting wholly or mainly of calcium carbonate some varieties suitable for burning into lime, (lime+stone).
(LIME)
New Shorter Oxford English Dictionary
A mortar or cement used in building, the alkaline, earth, calcium oxide, a brittle while caustic solid which is obtained by heating lime stone, combines with water with evaluation of much heat, and is used refractory and a constituent of mortar. A source of slaked lime, and in many industrial processes also called quicklime, also called lime, Calcium-organic any calcium containing fertilizer, A vat containing a solution of lime for O.E.-A vat containing a solution removing the hair from skin. Shakas – Rich II kind Richard lies within the limits of lime and stone, no lime has been laid on the land for forty years, lime burner – a person whose occupation is calcining lime stone to obtain lime – lime cast covering of layer of lime mortar. A pit where lime stone is quarried or calcind a round depressing in the earth found in lime stone distress, lime soap, lime soda, lime, sulphur lime-twig lime water.
Random House Dictionary
Burned lime calcium oxide caustic lime, calx, quick lime, a while or grayish-white odorless, lumpy very slightly water-soluble solid, CaO, that when combined with water forms calcium hydroxide (slaked lime obtained from calcium carbonate, lime stone or oystel shells, used chiefly in mortars, plasters and cements, in bleaching powder (Chlorinated lime) and in the manufacture of steel, paper, glass and various chemicals of calcium, 2. A calcium composed for improving crops grown in soils deficient in lime, 3. Birdlime, – V.T. 4. to treat (soil) with lime of compounds of calcium, 5. to smear twigs, branche, etc.) with birdlime 6. To catch.
(STONE)
New Shorter Oxford English Dictionary
A piece of rock or hard mineral, substance (other that mettle) of small or moderate size-arake a piece of rock or mineral substance (other than mettle) a definite form and size usually artificially shaped and used for some special purpose as for building for paving or on the form of black slab or pillar set up mark of boundary etc. the hard compact material of which stone or rock consists hard mineral substance (other than mettle). Hoyle some stone such as shape granite are unique to particular surface out craps, bath stone, iron stone, lime stone, mud stone, pipe stone.
Random House Dictionary
The hard substance, formed from mineral and earth material of which rocks consist, 2. A rock or particular piece or kind of rock as boulder a piece of agate, 3. a piece of rock quarried and worked into a specific size and shape for a particular purpose paving stone, building stone, 4. a piece of rocked small or moderate size as pebble, 5. precious stone, 6. one of various units of weight especially, the British unit equivalent to 14 pounds.
(MINERAL)
Chambers Dictionary
A substance produced by process of inorganic nature; a substance got by mining ore; a substance neither animal nor vagitable relating to minerals; having the nature of minerals; impregnated with minerals; as water; of inorganic substance or nature.
Oxford English Dictionary
substance obtained by mining; (belonging to) any of the species in to which inorganic substance are classified; water found in nature impregnated with mineral substance; artificial imitation of this specially sodawater also other efferygcont drink e.g. ginger beer, (specially in plural artificial mineral water.
Webster’s’ Dictionary
an substance occurring naturally in the earth and having a consistent and distinctive set of physical properties and composition that can be expressed by a chemical formula; sometimes applied to similar substance or organic origin, as coal any naturally occurring substance that is neither vegitable nor animal.
Black Law Dictionary
Any valuable lifeless substance formed or deposited in its present position through natural agencies alone and which if found either in or upon the soil of the earth or in the rocks beneath the soil.
10. In my opinion, having regard to the definition of the mineral and the lime stone referred hereinabove and the principle laid down by this Court in the case of Commissioner of Sales Tax v. Chela Ram Tulsidas (Supra), Commissioner of Sales Tax v. Ajanta Tiles (Supra), Mineral Sales Corporation v. Commissioner of Sales Tax (Supra) there is no manner of doubt that lime stone is mineral. It is obtained from mines by the mining process.
11. In my view, lime stone and lime are two different commodities. Lime stone can not be treated as lime. It is raw material for the manufacturing of lime. When the lime stone is burnt as a result of heating, certain items namely, magnesium etc. are eliminated and the lime is obtained. In common parlance they are not known as one and the same commodity. Both are considered to be different items. It is also doubtful that Lime Stone is stone, therefore, it is liable to tax @ 6% as stone under the notification No. ST-II-5785/X-10(1)-80-U.P. Act XV/48-Order-81, 07.09.1981. Lime stone in a wider sense may be a stone but the stone is commonly known as hard material marketable in the form of boulders or grits or slaps but the lime stone is soft stone and it is not marketed as boulders, grits or slaps. Dictionary meaning referred hereinabove show that Lime Stone is a mineral. Both stone and mineral are generic word. Both words have a wider connotation. It is settled principle of law that the notification, which is beneficial to the object is to be adopted. (See Mahalaxmi Polyplast (P) Ltd., Muzaffarnagar v. State of U.P. and Anr. reported in 1990 UPTC, 956, Commissioner of Income Tax, U.P. v. J.K. Hosiery Factory reported in 1986 UPTC, 901, Commissioner of Customs, Calcutta v. Tata Yodogawa Ltd. reported in 2001 (13) E.L.T., 406 (SC). Thus, the notification of the mineral which is beneficial to the assessee is to be adopted. Thus, order of the Tribunal is upheld.
12. In the result, all the revisions fail and are accordingly.