TMI Blog2002 (2) TMI 1294X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacture and sale of paints, primers, thinner, etc. The petitioner is a dealer under the Act. The dispute in this case relates to a commodity manufactured and sold by the petitioner called "thinner". 3.. A question arose before the taxing authorities under the State Sales Tax Act, as to under which entry the commodity "thinner" is liable to be taxed. According to the petitioner in the absence of any specific entry under Schedule II, the commodity in question, i.e., thinner will be taxable under Part VI, i.e., under the residuary entry, whereas the contention of department (taxing authorities) was that the commodity in question is liable to be taxed under serial No. 20 of Part II of Schedule II relating to paints and be taxed as paint. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be equated with either paints, lacquers, enamels, etc., and has to be therefore, taxed under the entry which applies to those commodities not included in any of the entries of Schedule II, i.e., what we call the residuary entry (Part VI). It is these submissions, which were elaborated and pressed in service. 6.. In reply, learned counsel for the State defended the impugned order and the view taken by the Commissioner and urged for its upholding. According to the learned counsel both thinner and turpentine oil are one and alike for all practical purpose and have the same object. It was urged that even though the word thinner is not mentioned in entry 20 of Part II of Schedule II that would not in itself be a ground to tax it in r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "(1) Thinner.-Any of various substances added to paint, to make it less thick. (2) Turpentine.-A strong-smelling colourless liquid used especially for making paint thinner and for cleaning paint from brushes." 10.. Mere perusal of aforequoted meaning of two commodities would make it manifest that both these commodities are used for making the paint thin. Now, when the object of two commodities is one and the same, when both are used for one purpose-namely for making the paint thin, then merely because the commodity thinner is not mentioned in the entry that would not by itself exclude the same from the rigour of that entry. Once, the name of one commodity as in this case "turpentine oil" is specified then, it is not necessary to inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tine which is also used in making the paint thin. It can, therefore, safely be said that the thinner has the attributes of a turpentine and hence is taxable as turpentine. 12.. The submission of learned counsel for the petitioner was that the very fact that the word "thinner" was not specified in entry 20 of Part II of Schedule II is in itself a ground to tax it under the residuary entry of Part VI in Schedule II. According to learned counsel if a commodity is not specified in any of the Schedule then the same has to taxed under the residuary entry because it is always the object for which residuary entry is enacted. 13.. I do not agree to this proposition. Indeed, if the submission of learned counsel for the petitioner is accepted th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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