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TMI Blog1995 (1) TMI 334X X X X Extracts X X X X X X X X Extracts X X X X ..... e is a manufacturer of all types of thinners, lacquers and industrial coatings. He submitted his return of turnover under the Bombay Sales Tax Act, 1959 ("the Act") for the period from October 22, 1977 to November 7, 1980 to the Sales Tax Officer. In the said return, it was claimed by the assessee that sales of "tol thinner and auto thinner " amounting to Rs. 1,87,880 made by it to one M/s. Bhor Industries Limited against T forms were liable to be assessed to tax at concessional rates, as they were chemicals and, as such, covered by entry 39(i) of the notification issued under section 41 of the Act. It was pointed out that these items had been claimed by the purchaser, M/s. Bhor Industries Ltd. also as purchases of chemicals covered by entr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of sales tax in paise in the rupee. Rate of purchase tax in paise in the rupee Period of operation. 1. 39(a) Synthetic pigments, other than textile dyes. Twelve Twelve 1-10-1972 to 30-6-1981 2. (b) All kinds of paints, other than those specified in entry 40 in this Schedule but including distempers, cement colours or paints, powder paints, stiff paste paints, enamels and liquid paints whether ready for use or not. Twelve Twelve 1-10-1972 to 30-6-1981 3. (c) Varnishes, vegetable, turpen-tine, paint removers and stainers of all kinds. Twelve Twelve 1-10-1972 to 30-6-1981 4. (d) All kinds of vehicles diluents an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and retail sales tax on fulfilment of certain conditions by virtue of entry 39 in the Schedule of notification issued by the State Government under section 41 of the Act. Counsel for the parties are agreed that if the goods in question do not fall under entry 39(d) to the Schedule C to the Act, it would fall under entry 22 of the Schedule E as claimed by the assessee. The determination of the controversy therefore, depends upon the interpretation of entry 39(d) of Schedule C to the Act. According to the assessee, "tol thinners" and "auto thinners" are not "thinners" which are used *Here italicised. in paint industry-these are in fact, "chemicals" used for dissolving rubber for the manufacture of leather cloth. The case of the assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ighten us as to how the meaning suggested by him can fit in entry 39(d) which enumerates some "material objects" or "goods" specified therein. There was no answer, and in our opinion, rightly so, because the above dictionary meaning of the expression "vehicles" does not have any relevance whatsoever in the context of entry 39(d). It is well-known that a word has no absolute meaning. It is used in different senses according to its context, and the dictionary gives all the meanings of a word. The primary meaning of the word varies with its setting or context and with the subject-matter to which it is applied. Shorn of the context, the words by themselves are slippery customers. The courts therefore, have to select the particular meaning which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rial to achieve a desirable and beneficial effect. Examples are combination of diatomaceous earth with nitroglycerine to form the much less shock-sensitive dynamite; addition of sand to cement mixes to improve workability with no serious loss of strength; addition of an organic liquid having no solvent power to a paint or lacquer to reduce viscosity and achieve suitable application properties.........." "Thinner" has been defined therein as: "A hydrocarbon (naphtha) or oleoresinous solvent (turpentine) used to reduce the viscosity of paints to appropriate working consistency usually just prior to application. In this sense a thinner is a liquid diluent, except that it has active solvent power on the dissolved resin......" In McGraw-Hill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under entry 39(d) of Schedule C. 7.. The very same conclusion, will be there, if we interpret the words "tol thinners" and "auto thinners" with the aid of the "user test" which permits the courts, while interpreting items in the taxing statute, also to consider the use to which the goods can be put. There is no dispute about the fact that the particular use to which it is applied in the hands of a special customer is not determinative of the nature of the goods. It is its general or predominant user which might determine the category in which the article would fall. Applying the above test also, it is obvious that "tol thinner" and "auto thinner" are not "vehicles diluents and thinners", and hence they would not fall under entry 39(d) of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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