9911796707
TMI Blog2013 (4) TMI 682X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment years 2005-06, 2006-07 and 2007-08. 2. The assessee is a dealer registered under the provisions of the Karnataka Tax on Entry of Goods Act, 1979 (for short, hereinafter referred to as, "the Act"). The assessee had effected purchase of a commodity known as "IPOL Cylinder Oil 1200" which was used in the manufacture of grease. Thus, the said oil is used as "base oil" in the manufacture of grease which was meant for use in open gears in steel and cement mills. During the aforesaid assessment years, the assessee had purchased the same from the State of Maharashtra from one M/s. Sah Petroleum Products Ltd., and caused entry into the local area within the Karnataka State. While filing the returns under the Act, the assessee claimed e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nferred under section 15(2) of the Act, proposed to revise the order of the first appellate authority on the ground that the said order was erroneous insofar as it is prejudicial to the interest of the Revenue. The assessee filed his reply to the notice contending that the oil in question is the base oil and not the lubricating oil. They relied upon the test certificate issued by M/s. Shiva Analyticals (India) Limited, a Government of India approved, independent laboratory wherein it was held that it was base oil and not lubricating oil. The assessee also relied upon the order of the Advance Ruling Authority constituted under the provisions of section 12C of the Act in the case of M/s. Karol Lubricants Specialities Pvt. Ltd., wherein it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, that cannot be taken into consideration to decide the tax leviable under the Act. Therefore she submits that the impugned order passed is erroneous and requires to be set aside. 5. Per contra, the learned counsel appearing for the Revenue Sri T.K. Vedamurthy submitted that admittedly IPOL cylinder oil is raw material used for manufacture of lubricant oil. When five per cent tax is leviable on the raw material out of which, the lubricating oil is manufactured, in the invoice, the assessee has mentioned the oil as lubricating oil and therefore, the revisional authority was justified in passing the impugned order and restoring the original assessment order. Therefore, no case for interference is made out. 6. In the light of the afo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notification. In the said notification there is no mention about the word "IPOL cylinder oil" and the same is also not mentioned in entry 67. The assessing authority as well as the revisional authority after noticing the invoice held that the oil which was brought into the local area is lubricating oil and therefore, it is exigible to tax at five per cent. If the oil that the assessee purchased is the lubricating oil, then by virtue of the Schedule as well as by notification, it is excisable to tax. The question is what is the oil purchased by the assessee. Is it a lubricating oil? The said invoice clearly mentions, variety of goods in respect of which, a concessional rate of duty is claimed as "IPOL cylinder oil 1200". The description in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the items of petroleum products mentioned in the Notification I No. FD 11 CET 2002, dated March 30, 2002 attract entry tax at the rates mentioned in the notification. For this purpose certain selected items are notified. Petroleum products mentioned under the notification are lubricating oil, transformer oil, brake fluid or clutch fluid, bitumen (asphalt), tar and others excluding LPG, aviation fuel and kerosene. Base oil does not find a place in the above list. Tar and others mentioned therein takes into its net items like tar, bitumen and related products and not base oil. 9. When lubricating oil and transformer oil are included under the notification, base oil is specifically excluded. In this context it may be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he lubricating oil. After purchasing the "IPOL cylinder oil" as set out above, certain processes are conducted to convert it into a grease which is used for industrial purposes. Under these circumstances, when the "IPOL cylinder oil" is not one of the petroleum products included in entry 67 for the purpose of levying tax under section 3(1) of the Act, the same does not find place in the notification issued under the said provisions. The order passed by the first appellate authority setting aside the order passed by the assessing authority was legal and valid. The revisional authority committed a serious error in interfering with such an order without reading the invoice properly. Thus, the impugned order is liable to be set aside. 14. Henc ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
