9911796707
TMI Blog1991 (6) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted an application dated February 16, 1979, under section 62(1)(e) of the Gujarat Sales Tax Act, 1969, to the Commissioner for determination of the rate of tax payable on such sale. The question arose under which of the following two entries, which were in force at the relevant time, the article LAB was falling. Entry 9 of Schedule II, Part A read as under: "9. Dyes and chemicals other than those specified in any other entry in this or any other Schedule." Entry 32 of Schedule II, Part A reads as follows: "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." 2.. The application was heard a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e kerosene and benzene. Both, kerosene and benzene are petroleum products. On this point there is no dispute. It is also not in dispute that when these two articles, namely, kerosene and benzene are mixed together in certain proportion, the product LAB comes into existence. It is also not in dispute that LAB does not contain any other ingredients other than kerosene and benzene. Therefore, simply because on account of the mixture of two petroleum products, the third product which has come into existence does not cease to be a petroleum product. It is not a sub-product of petroleum product as is sought to be argued. Even if it may be considered to be a subproduct of one main petroleum product, it would not cease to be a petroleum product. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... smuch as it was not a primary product obtained on crushing of bones such as bone sinew, bone grist and bone-meal. Repelling the argument, the Supreme Court held that the word "product" was defined in the dictionary. The word "product" means "anything produced or obtained as a result of some operation or work". The expression "bone product" therefore, means anything produced or obtained from bones. Whether such derivation was by a simple physical process or by a chemical reaction would not make any difference to the end-product. 6.. In the instant case also the raw materials or ingredients of LAB are petroleum products. On this point there is no dispute. After carrying on some process on these petroleum products, if something else is produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4, as it was in force at the relevant time, described refined diesel oil and vaporizing oil. Therein certain details have been given as regards other products. It is not disputed that refined diesel oil and vaporizing oil referred to in tariff item No. 8 are petroleum products. In this entry LAB had been taxed as far as the Central Excises and Salt Act, 1944, is concerned. Thus it is obvious that the people dealing in this commodity called LAB, have been treating the same as a petroleum product. 9.. Unless it is shown that on account of the mixture of two elements which are petroleum products, the product which comes into existence ceased to be a petroleum product, ordinarily it will have to be treated as a petroleum product. Simply becau ..... X X X X Extracts X X X X X X X X Extracts X X X X
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