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TMI Blog2016 (2) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... and others". The clarification issued by the Commissioner of Commercial Taxes is held to be bad in law and shall not bind the petitioner - impugned order quashed - Decided in favor of appellant. - Writ Petition Nos. 32684-32685/2015 (T-EYT) - - - Dated:- 6-1-2016 - Anand Byrareddy, J. For the Appellant : Sri T. N. Keshava Murthy, Adv For the Respondent : Shri S.V. Giri Kumar, Addl. Govt Adv ORDER Heard the learned counsel for the petitioner and the learned Government Advocate. 2. The petitioner is a Company engaged in the manufacture and sale of automotive tubes and other rubber products at its factory in Mysore. It is a registered dealer under the provisions of the Karnataka Value Added Tax Act, 2003 (hereinaft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the notification issued. The Rubber Process Oil purchased by the petitioner and used by it as an input is one of the goods listed in the First Schedule to the KTEG Act and is not covered by Government Notification No.FD 11 CET 2002 (I) dated 30.03.2002 at Annexure 'C'. The levy of entry tax at 5% on the value of Rubber Process Oil is lacking in jurisdiction and opposed to law and therefore, the impugned assessment orders lack jurisdiction and are opposed to law. 4. The central point in issue is whether the clarification issued by the Commissioner of Commercial Taxes holding that Rubber Process Oil is a lubricating agent is justified. In this regard, the learned Government Advocate has made available the file pertaining to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th a similar situation when 'IPOL Cylinder Oil 1200' was sought to be treated as a petroleum product with reference to the notification issued under the Central Excise Tariff, has opined that the classification under the Central Excise Act would have no application under the KTEG Act. By the same token of reasoning, it could straightaway be said that the relevance placed on the notification issued under the Central Excise Tariff could not be the basis to conclude that the Rubber Process Oil could be classified as a petroleum product falling under Tar and others . 6. The other significant circumstance in coming to a conclusion that the classification made is apparently off the mark and without basis are the opinions furnished by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agent at all, but a plasticizer in the manufacture of rubber products. Additives used in the manufacture of lubricants are detrimental to performance of rubber products. It is certified that RPO is used in the manufacture of rubber products not as a lubricating agent but as an input for plasticizing qualities. The Indian Oil Corporation Limited has also issued a certificate, which reads as follows:- Rubber Process Oils (RPO) RPO are broadly classified into three groups as follows. 1) Aromatic ASTM - 101 Type 2) Paraffinic ASTM 104 Type 3) Naphthenic ASTM - 103 Type, 2) The above oils are derived from petroleum by various primary and secondary processes in petroleum refineries all over the world. These are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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