RALLIS INDIA LTD. vs THE STATE OF TAMIL NADU

The Supreme Court examined the classification of Gelatin under Entry 138 of the Tamil Nadu General Sales Tax Act, 1959, determining that Gelatin does not qualify as a chemical. The Court held that the High Court erred in disregarding the findings of the Sales Tax Appellate Tribunal, which concluded that Gelatin cannot produce a chemical effect and is not an intermediary product. Consequently, the Supreme Court set aside the High Court's decision and restored the Tribunal's ruling that Gelatin should not be classified as a chemical for tax purposes.