TMI Blog1967 (8) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... n the first of these cases, there are four items of turnover, a sum of Rs. 2,08,52,235.42 representing the turnover of sales of furnace oil, Rs. 22,234.59 being the turnover of canteen sales, Rs. 1,97,917.20 representing sales of publicity materials, and the last a sum of Rs. 29,660.00 being the aggregate sales of scrap. In respect of the turnover of sales of publicity materials, a penalty of Rs. 1,000 was levied on the ground that there was a failure to return that amount. The assessing officer considered that furnace oil fell within the ambit of item 47 and brought them to tax at 6 per cent. On the view that the other items of turnover constituted sales in the course of business, they too were charged to tax. The assessee has failed throu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l by separating and purifying the various heavy components of the crude......the methods of treatment vary widely." In that sense, fuel oil is obviously not a lubricant. In fact, it is a combustible article used in industry for fuel purposes which may be varying in character. But the revenue's point of view is that although fuel oil is not a lubricant, it being mineral oil, it squarely falls within the ambit of the words "all kinds of mineral oils" in entry 47. For the assessee it is urged that those words in the context of the words preceding and following should be given a limited meaning and be understood as "all kinds of mineral oils which are lubricants". This construction is sought to be supported in two ways, one by reference to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dra Devi[1957] 32 I.T.R. 615; A.I.R. 1957 S.C. 832. itself this was stated in these terms: "What was intended to be done by the Legislature in enacting this amendment may be gleaned to a certain extent from the statement of objects and reasons appended to the Bill which eventually became the amending Act." The statement of objects and reasons for Madras Act VII of 1964 appears to be that because a doubt had been raised whether soluble quenching oil which is a mineral oil was a lubricant, it became necessary to amend item 47. It was for that reason the entry was amended as it appears now. Quenching oil is a coolant and is also used as a lubricant. A reference to certain publications, which we need not refer to, confirms this. That quenchin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which are lubricants and which are provided for elsewhere in the Schedule than in item 47. If the Legislature intended that mineral oils other than lubricants are to be brought within the single point scheme of taxation, we fail to see how and why it failed to make an independent entry, but chose to interpose the words "all kinds of mineral oils" between the words in the entry which cover only lubricants. We are of opinion, therefore, that entry 47, as amended in 1964, does not include furance oil which is a non-lubricant. On that view it will be unnecessary to invoke the aid of the ejusdem generis rule. Since, however, argument has been addressed to us, we will briefly deal with that aspect too. The rule is that where specific words are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reases" are but species of the genus. If two species are mentioned followed by general words, the rule of ejusdem generis may limit the sense of the general words to the species constituting a genus. But where a genus itself is mentioned followed by mention of certain species and in between is introduced general words, we think the position is a fortiori, for, sandwiched as they are, the general words will, in our opinion, take their sense and scope from the associated words preceding and following them. No direct authority has been quoted to us; but we think that the principle of the rule of ejusdem generis, having regard to the essence of it, will apply to the situation limiting the meaning of the general words to that of the genus and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as a dealer. On that view we think that the turnover relating to sales of publicity materials is not chargeable to tax. That the sales of scrap by the assessee is not liable to tax, is covered by the principle of our judgment in T.C. Nos. 170 and 213 of 1964 (M/s. Loyal Textile Mills, Kovilpatti v. State of Madras by D.C.T.O., TirunelveliSince reported at p. 195 supra.) and so too canteen sales by our judgment in T.C. No. 152 of 1964 (The Deputy Commissioner of Commercial Taxes, Coimbatore Division v. Sri Thirumagal Mills Ltd.Since reported at [1967] 20 S.T.C. 287.). So far as the penalty is concerned, this clearly is unsupportable, because the turnover relating to publicity materials was disclosed by the assessee's accounts and it canno ..... X X X X Extracts X X X X X X X X Extracts X X X X
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