9911796707
TMI Blog1980 (2) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... follows: The assessee-company is engaged in the business of sale and distribution of petrol and petroleum products. The assessee was assessed to sales tax for the period from 26th December, 1963, to 25th December, 1964, by order dated 28th, March, 1968, by the Assistant Sales Tax Commissioner. By this order, the turnover arising out of the sale of Esso solvents Nos. 1425, 2445 and 3040 was taxed under entry No. 39 of Part II of Schedule II to the Act, which provided for taxation of all kinds of petroleum products and mineral oils including kerosene oil except those that are liable to tax under the M.P. Sales of Motor Spirits Taxation Act, 1957, hereinafter called the Motor Spirits Act. This order was revised by the Additional Commissioner o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udes petrol, diesel oil and other internal combustion oils but does not include kerosene, furnace oil, coal or charcoal." The definition of "petrol" is to be found in section 2(i) of the Motor Spirits Act and it is as under: "'Petrol' means dangerous petroleum as defined in the Petroleum Act, 1934 (30 of 1934); and includes admixture of power alcohol as defined in the Indian Alcohol Act, 1948 (Central Act 22 of 1948), and petrol." The provisions of section 2(a) and (b) of the Petroleum Act. 1934, which were in force at the material time, are as under: "2. In this Act, unless there is anything repugnant in the subject or context,- (a) 'petroleum' means any liquid hydrocarbon or mixture of hydrocarbons, and any inflammable mixture ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is thus clear that the clause "which by itself or in admixture with other substances is ordinarily used directly or indirectly to provide reasonable efficient fuel for automotive or stationary internal combustion engines", occurring in section 2(h) of the Motor Spirits Act, has been construed by the Board to govern not only the words "any substance" preceding the said clause but also the words "petrol ", "diesel oil" and "other internal combustion oils", which follow that clause. This construction placed by the Board is, in our opinion, erroneous. Esso solvent No. 1425 is, it is not disputed, "petroleum" having its flashing point below seventy-six degree Fahrenheit and, hence, it is covered by the definition of "petrol", as contained in se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... internal combustion oils are brought within the purview of "motor spirit" by including those things in the definition of "motor spirit". As regards other substances, the test furnished by the definition to ascertain whether it is "motor spirit" or not is to find out if that substance is ordinarily used directly or indirectly to provide reasonable efficient fuel for automotive or stationary internal combustion engines. If a substance is not so used, then it is not "motor spirit" as defined by the Motor Spirits Act. But, in case of petrol, diesel oil and other internal combustion oils, no further enquiry regarding the ordinary use to which these things are put is contemplated for deciding whether they are covered by the definition of "motor s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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