9911796707
TMI Blog1985 (8) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment year 1975-76, they were assessed on a taxable turnover of Rs. 7,63,604 at 8 per cent in sales of grease manufactured by them and also on a turnover of Rs. 1,32,916 taxed at 4 per cent under section 7-A of the Tamil Nadu General Sales Tax Act, 1959, in respect of purchases of used oil, which has been used for the manufacture of grease by the assessee. The assessee claimed that the turnover of Rs. 1,32,916 represents his purchase of the lubricating oil and the lubricating oil being falling under entry No. 47 of List I is taxable at single point and therefore the assessee is not liable to pay tax under section 7-A of the Act. As the used oil purchased by them from hawkers is the same lubricating oil that was sold by the oil companies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bricating oil as also the drained or used oil in support of his plea that the used oil consists of the same chemical properties as the lubricating oil itself and so long as it is not ceased to be the lubricating oil, the purchases cannot be taxed under section 7-A of the Act. Normally, the used or drained oil is not again used as a lubricating oil for, the oil is drained only when it could no longer be used as a lubricating oil. According to the learned counsel for the petitioner, the used oil or drained oil is a lubricating oil with some impurities and as soon as the impurities are removed by some process it again becomes a lubricating oil and could be used as such. Even assuming that after some process the drained or used oil could again ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the learned counsel for the assessee that the chemical properties and the oil should be taken as the criteria for deciding the question as to whether the particular oil comes within entry No. 47 or not. In our view, the correct approach should be to take the user as the basis and so long as the oil could not be used or sold as a lubricating oil then that cannot be taken to fall under entry No. 47. Thus, the oil purchased by the assessee for the use in manufacture of grease is not a lubricating oil but an oil generally and since all the oils have not been brought in under entry No. 47 it should be taken to come under the multi-point scheme. It is in this view the Tribunal has held that since the oil purchased by the petitioner comes within ..... X X X X Extracts X X X X X X X X Extracts X X X X
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