T.V.L.NILSIN INDUSTRIES. vs STATE OF TAMIL NADU

The Supreme Court ruled that ultramarine blue qualifies as a pigment under Item 110 of the Tamil Nadu General Sales Tax Act, 1959, rather than as a chemical under Item 138. The Court upheld the High Court's conclusion that the Sales Tax authorities' classification was justified, emphasizing the distinction between pigments and dyes. The judgment affirmed the applicability of the sales tax at the point of first sale in the state for ultramarine blue, thereby rejecting the assessees' claims.