COMMISSIONER OF SALES TAX Vs. BURMAH SHELL OIL STORAGE AND DISTRIBUTING CO OF INDIA
LAWS(MPH)-1980-11-20
HIGH COURT OF MADHYA PRADESH
Decided on November 04,1980

COMMISSIONER OF SALES TAX Appellant
VERSUS
BURMAH SHELL OIL STORAGE AND DISTRIBUTING CO.OF INDIA Respondents





Cited Judgements :-

COMMISSIONER OF COMMERCIAL TAX VS. STANDARD PAINT HOUSE [LAWS(MPH)-1999-5-18] [REFERRED TO]


JUDGEMENT

- (1.)BY this reference under Section 44 (1) of the M. P. General Sales Tax Act, 1958 (hereinafter referred to as the Act), the Board of Revenue has referred the following question of law for the opinion of this Court :
Whether mineral turpentine falls under entry No. 39 of Part II or entry No. 25 of Part II of Schedule II appended to the M. P. General Sales Tax Act, 1958?

(2.)THE facts giving rise to this reference briefly stated are as follows : The assessee, M/s. Burmah Shell Oil Storage and Distributing Company, was assessed to sales tax under the Act for the calendar year 1967. Mineral turpentine worth Rs. 72,135 was sold by the assessee and tax was paid on this sale at the rate of 7 per cent. The assessing authority held that tax was payable on mineral turpentine oil at the rate of 11 per cent under entry No. 25 of Part II of Schedule II to the Act. The assessee contended that this sale was liable to tax at the rate of 7 per cent under entry No. 39 of Part II of Schedule II. On appeal preferred by the assessee the Deputy Commissioner of Sales Tax confirmed the order of the assessing authority and dismissed the appeal. On further appeal by the assessee the Board of Revenue has held that the sale was liable to be taxed under entry No. 39 of Part II of Schedule II to the Act as contended by the assessee. At the instance of the department the Board of Revenue has referred the aforesaid question of law for the opinion of this Court.
(3.)THE learned Government Advocate for the department contended that turpentine oil has been specifically mentioned under entry No. 25 of Part II of Schedule II to the Act and, therefore, it was rightly taxed by the assessing authority under that entry and the Tribunal was not justified in holding that it was liable to be taxed under entry No. 39 of Part II of Schedule II to the Act, which is a general entry. The learned counsel for the assessee contended that turpentine oil mentioned under entry No. 25 of Part II of Schedule II to the Act must take colour from the group of commodities which are dyes, paints, varnishes, lacquers, enamels, glue, paint-brush and sandpapers and that turpentine oil sold by the assessee was a petroleum product and, as such, it was liable to be taxed only under entry No. 39 of Part II of Schedule II to the Act.


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