TMI Blog2005 (1) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... by it under the Haryana General Sales Tax Act, 1973 (for short, "the 1973 Act") for the assessment year 1988-89, the petitioner had shown sale of used transformer oil worth Rs. 2,68,403.85 to registered dealers, but did not pay tax in terms of section 18 read with Notification No. S. O. 156/H. A. 20/73/S. 18/87 dated December 30, 1987 on the premise that the same does not fall within the ambit of the expression "petroleum products". The Excise and Taxation Officer-cum-Assessing Officer, Ambala (hereinafter referred to as "the Assessing Authority") rejected the petitioner's plea and levied tax on the sale of used transformer oil by treating it as petroleum product. The first appeal filed by the petitioner was dismissed by the Joint Excise and Taxation Officer (Appeals), Ambala [for short, "JETC (A)"] and the second appeal filed by it was dismissed by the Tribunal by observing that even though, the potential of its lubrication may be substantially reduced, the transformer oil retains its character as a petroleum product. Shri Rajesh Garg, learned counsel for the petitioner, assailed the impugned orders by arguing that the used transformer oil cannot be subjected to tax under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rer, the importer, whole-saler and retailer, and finally, the consumer who, in the last analysis, pays the tax. Parliament would not suppose in an Act of this character that manufacturers, producers, importers, consumers and others who would be affected by the Act, would be botanists. The object of the Excise Tax Act is to raise revenue, and for this purpose to class substances according to the general usage and known denominations of trade. In my view, therefore, it is not the botanist's conception as to what constitutes a 'fruit' or 'vegetable' which must govern the interpretation to be placed on the words, but rather what would ordinarily in matters of commerce in Canada be included therein. Botanically, oranges and lemons are berries, but otherwise no one would consider them as such." The above reproduced observations were quoted with approval by the Supreme Court in Ramavatar Budhaiprasad v. Assistant Sales Tax Officer [1961] 12 STC 286; AIR 1961 SC 1325. While interpreting the word "vegetables" occurring in Central Provinces and Berar Sales Tax Act, 1947, their Lordships of the Supreme Court held as under: ". . . . . But this word must be construed not in any technical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the powers conferred by section 18 of the Haryana General Sales Tax Act, 1973 and all other powers enabling him in this behalf, and in supersession of Haryana Government Excise and Taxation Department, Notification No. S. O. 98/H. A. 20/73/S. 18/73 dated the 5th May, 1973, as amended from time to time, the Governor of Haryana hereby directs that the tax under section 15 of the said Act shall be levied, with effect from the 1st day of January, 1988, at the first stage of sale on the following goods, namely: 1 to 6 . . . . . 7.. Petroleum products including motor spirit; 8 to 81 . . . . ." A reading of the plain language of section 18 along with item No. 7 of notification dated December 30, 1987 makes it clear that tax is leviable on petroleum products including spirit at the first stage of sale. It is not in dispute that the transformer oil purchased by the petitioner for its use falls within the ambit of the term "petroleum products" appearing at S. No. 7 of Notification dated December 30, 1987. It was used by the petitioner as a lubricant for operating transformers. Thereafter, the same was sold to the registered dealers as the used transformer oil and not as any other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... surplus copies as waste paper attracted sales tax, having regard to the terms of clause (d) of section 2 of the Act, which defines the expression 'business', as it stood at the relevant time. In our opinion, the High Court is plainly right in maintaining the sales tax assessment on the turnover of the surplus copies of newspapers sold as waste paper." In State of Kerala v. V. Padmanabhan [2003] 129 STC 245; [2000] 9 SCC 262, the Supreme Court considered the question whether the refill of ball point pen can be treated as pen falling within entry 135 of Schedule I of the Kerala General Sales Tax Act, 1963. The Kerala Sales Tax Tribunal held that even though, the refill was a part of the ball point pen, it could not by itself be regarded as a pen. The Kerala High Court reversed the order of the Tribunal and held that refill of the ball pen is liable to be treated as pen. While reversing the order of the High Court, the Supreme Court observed: "We must note immediately that there is no evidence on record before us as to how a refill is regarded by the public or in commercial parlance, but we have used ball point pens for long enough to be able to give an authoritative opinion. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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