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TMI Blog1978 (12) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... .54 on the basis that LPG was covered by entry 88 of Schedule II-Part A of the Gujarat Sales Tax Act, 1969 (hereinafter referred to as "the Act"). Thereafter, the assessee made an application under section 62 for the determination of the question as to what was the correct rate of tax payable on the sale of LPG in bulk. The contention of the assessee, inter alia, was that LPG sold by it in bulk was not covered by entry 88 of Schedule II-Part A, because it was not supplied in closed containers but it was poured into the tank-truck brought by the purchaser to the site and that, under the circumstances, LPG being a petroleum product, it was covered by entry 32 of Schedule II-Part A. The Deputy Commissioner of Sales Tax, who heard the applicati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as that in order that entry 88 of Schedule II-Part A can apply, inflammable gas should be supplied by the vendor in a closed container and that since, in the instant case, LPG, which was supplied in bulk, was poured into the tank-truck of the purchaser and it was not supplied in any closed container by the assessee, the said entry was not attracted. The Tribunal also found in the alternative that tank-trucks of the purchasers into which LPG was poured could not be held to be "closed containers" within the meaning of entry 88 of Schedule II-Part A and that, therefore, also the said entry was not attracted. As LPG was essentially a petroleum product, the Tribunal was of the view that it was covered by entry 32 of Schedule II-Part A. In view o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e read at this stage: "32. Petroleum products, including light diesel oil but excluding lubricants, kerosene, solvent oil, furnace oil and also excluding motor spirit declared tax-free under entry 39 in Schedule I. 88.. Inflammable gas supplied in closed containers." It may be recapitulated that both the Deputy Commissioner of Sales Tax and the Tribunal have found that LPG is a petroleum product. The finding is obviously correct. As pointed out by the Tribunal, petroleum products are of various types and they are derived either straight from crude or from derivatives of crude. One of the petroleum products is propylene which is produced by catalytic cracking of raw naphtha in the refining process. This substance is used as a source of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng words are, therefore, determinative of the question whether a particular petroleum product which is in the form of inflammable gas is covered by the said entry or by entry 32. It is pertinent to point out at this stage that the physical nature of the product influences the manner in which it is distributed. The majority of the petroleum products are liquids, stable under most conditions, capable of being contained in simply constructed tanks and of being pumped from one location to another. The petroleum products that offer greater problems of handling are those that fall at either end of the boiling range: gases, greases, heavy fuels, waxes and asphalts. Liquefied petroleum gas (LPG) has to be stored and moved under pressure and is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able event and the taxable person. If the contention of the revenue, namely, that even if LPG is poured into the tank-trucks of the purchaser, it would amount to supplying inflammable gas in closed containers, is to be accepted, it would be necessary to add the words "or collected" in-between the words "supplied" and "in closed containers". There is no reason why addition of words should be made because even without that the entry is capable of bearing a reasonable meaning. In our opinion, therefore, even on this ground, on the facts and in the circumstances of the case set out above, entry 88 would not be attracted. We wish to make it clear that we are not entering into the validity of the findings of the Tribunal on the other aspects in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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