( 1 ) THE petitioner is an assessee under the Karnataka Sales Tax Act, 1957 (for short the Act ). For the assessment period 1999-200, the petitioner declared the gross and taxable turnover at Rs. 3,38,49,121/- and Rs. 1,84,03,986/- respectively. The taxable turnover include first sale of NITROUS OXIDE to Hospital and Nursing Homes for anesthetic purposes to an extent of Rs. 14,48,084-25. The petitioner had classified the sale of Nitrous Oxide as a chemical falling under Entry No. 10-A (Part-C) of II Schedule, which related to Chemicals of all kinds including copper sulphate, caustic soda, dyes and sulphur. The rate of tax for substances falling under Entry 10a was 4% from 1-4-1996 to 31-12-1999 and 8% from 1-1-2000 to 31-03-2000.

( 2 ) THE Assessing Authority by order dated 30-07-2001, rejected the classification of Nitrous Oxide as a chemical falling under Entry No. 10-A (Part-C) of II Schedule. He treated it is an unclassified goods falling under Section 5 (1) of the Act, for which the rate of tax was 10%.

( 3 ) IN an appeal filed by the petitioner, the Appellate Authority held that the Nitrous Oxide was an industrial gas falling under Entry-3 (of Part-II) Schedule. The said entr

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