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TMI Blog1998 (3) TMI 640X X X X Extracts X X X X X X X X Extracts X X X X ..... l mixture. Methanol mixture is supplied to only one type of aircraft and is carried by it during flight. It is supplied only to that aircraft with dart engine. Appellant stated that he has supplied the material at the relevant time mostly to Indian Air Force (IAF). The substance in principle is used as a coolant at the time of takeoff only to prevent the engines working at its highest speed from overheating. The appellant declared all along prior to March 31, 1992 the methanol mixture was an unscheduled item and liable to be taxed under section 5(1) of the Karnataka Sales Tax Act, 1957 (hereinafter called the Act ). Assessing authority accepted the position and passed necessary orders which are annexed as A.1 to A.6. The Joint Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xed at appropriate rates and accordingly set aside common suo motu order of the JCCT dated February 9, 1993 as well as the assessment orders for the years in question. He held that methanol mixture for all the six assessment years represented a motor spirit and was subjected to tax at the rate prescribed under entry 85(old)/M.12(new) of the Second Schedule and accordingly directed assessing authority to collect the differential tax and issue demand notices for all the six assessment years and thereafter notices were issued. Against that order present appeal is filed. 2.. The learned counsel for the appellant contended that the respondent erred in holding that the methanol mixture is a motor spirit for purpose of taxation. The methanol mix ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of goods and rate of tax leviable on such goods during the course of sale and purchase of the same. Old entry 85/M.12(new) of the Second Schedule deals with the motor spirit and provides for tax at the rate of 15 per cent for the years 1984-85, 1985-86 and thereafter entry 12 of the Second Schedule deals with the motor spirit and it provides for tax at the rate of 20 per cent for the years 1986-87, 1988-89. For the year 1989-90 tax is at the rate of 18 per cent and again for the year 1990-91 tax is at the rate of 19 per cent. With effect from April 1, 1992 the methanol mixture came to be classified under entry of category of petroleum products vide entry No. P5 of (xiv) carrying rate of 10 per cent tax. If the methanol mixture is not trea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . There is no dispute that the methanol mixture is injected into combustion chamber during take-off of the aircraft and also at high altitude for power restoration and augmentation. Further, it is noticeable that methanol mixture while mainly contributing to increase in the density in the combustion chamber of the jet engine, also partakes in the combustion releasing a certain amount of energy. It may be that it is not used as principal fuel; but it is noticeable that provides a more fuel in the combustion chamber of jet engine by facilitating a greater and more optimum burning of the main fuel, besides contributing a small quantity of energy by its own burning. So the methanol mixture in admixture with gasoline and air indirectly provide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m product by amending Schedule to the Act and it is no more a motor spirit. When it is a petroleum product it cannot be a motor spirit. So even earlier to April 1, 1992 it has to be treated as petroleum product and not motor spirit. The Legislature has got freedom to treat a particular substance in a particular way as it likes unless the Legislature has no legislative competency or description given as unconstitutional. As stated supra the constitutional validity of the entry is not challenged before us. When the Legislature has got a right to treat the particular goods or substance in a particular way the same cannot be questioned otherwise than its constitutional validity on the ground of arbitrariness or legislative competence. Therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-hydrogen, provided that suitable anode catalysts are used. Simple low power units operating directly on methanol at ambient temperature do find some use and liquid-fueled hydrazine cells have also found specialised applications. However, the high manufacturing energy requirement for hydrazine, together with its high cost and hazardous nature, leaves hydrogen the only suitable general high performance fuel candidate. See Ammonia: Hydrazine: Hydrocarbon, Hydrogen, Methanol. 11.. The above definition of fuel also supports contention of the Government Pleader that the methanol mixture could be treated as motor spirit. 12.. Therefore, we are not able to agree with the contention of the learned counsel for the appellant. 13.. The learn ..... X X X X Extracts X X X X X X X X Extracts X X X X
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