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TMI Blog1980 (11) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... ?" 2.. The facts giving rise to this reference briefly stated are as follows: The assessee, M/s. Burmah Shell Oil Storage and Distributing Company, was assessed to sales tax under the Act for the calendar year 1967. Mineral turpentine worth Rs. 72,135 was sold by the assessee and tax was paid on this sale at the rate of 7 per cent. The assessing authority held that tax was payable on mineral turpentine oil at the rate of 11 per cent under entry No. 25 of Part II of Schedule II to the Act. The assessee contended that this sale was liable to tax at the rate of 7 per cent under entry No. 39 of Part II of Schedule II. On appeal preferred by the assessee the Deputy Commissioner of Sales Tax confirmed the order of the assessing authority and dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al oils including kerosene oil except those which are liable to tax under the Madhya Pradesh Sales of Motor Spirit and Lubricants Taxation Act, 1957." The Board of Revenue considered the meaning of the word "turpentine oil" as given in Webster's Third New International Dictionary, 1961 edition, and of the word "mineral oil" as given in the said dictionary and came to the conclusion that the mineral turpentine oil sold by the assessee fell within entry No. 39 of Part II of Schedule II to the Act. The meaning of the words "turpentine oil" and "mineral oil" as given under Webster's dictionary is as follows: "Turpentine oil: the colorless or slightly yellowish mobile flammable pungent biting essential oil that is obtained by distillation from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osphorus, resins, Waxes, oils, and natural rubber. On exposure to air, it hardens and may convert the oxygen into peroxides. Chemically, oil of turpentine is a mixture of cyclic monoterpene hydrocarbons, the predominant constituent being pinene. The largest use for spirit of turpentine is as a paint and varnish solvent. Painters prefer 'turps' as a paint thinner and brush cleaner even though paint manufacturers use the cheaper petroleum solvents as thinners. Spirit of turpentine is used as a solvent for waxes and polishes and as an intermediate in the preparation of synthetic camphor, synthetic pine oil, oil additives, insecticides, and synthetic resins. A purified form of oil of turpentine (oleum terebinthinae) is used as a constituent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uel Tubes, Indore[1980] 46 S.T.C. 473. (M.C.C. No. 327 of 1976 decided on 7th February, 1980), following the decision of the Supreme Court in Deputy Commissioner of Sales Tax v. Pai and Co.[1980] 45 S.T.C. 58 (S.C.). It is not the case of the revenue that the turpentine oil sold by the assessee had anything to do with dyes, paints, varnishes, etc., and as stated above it is not disputed that the turpentine oil produced and sold by the assessee is a by-product arising out of the refined crude oil and its origin is mineral oil. In the circumstances we are of the opinion that the Board of Revenue has rightly held that the mineral oil sold by the assessee was taxable under entry No. 39 of Part II of Schedule II to the Act. 7.. Our answer, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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