2005 (9) TMI 651

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..... tanding counsel and Sri S. R. Gupta, Senior Advocate assisted by Sri Praveen Kumar appearing on behalf of the dealer opposite party. 4. Learned Standing Counsel submitted that the dealer opposite party (hereinafter referred to as the dealer ) has purchased used oil from unregistered dealer and also from the Railways and such used oil was considered as burnt oil. The assessing authority levied the tax under Section 3AAAA of the Act being covered under the entry old discarded and unserviceable...which is taxable at the point of sale to consumers. He submitted that the first appellate authority and the Tribunal has illegally deleted the tax levied on the purchases of used oil under Section 3-AAAA of the Act. In support of his contention, .....

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..... h decision of the Bombay High Court in the case of Commissioner of Sales Tax v. Oil Processors Private Limited, reported in 108 STC 44 for the purpose that the lubricating oil after removal of impurities remains the lubricating oil. Reliance has been placed to show that the lubricating oil, which was used and subsequently processed, was also a lubricating oil which has been held as lubricating oil after processing. 6. I have perused the order of the Tribunal and the authorities below. I do not find any error in the order of the Tribunal. 7. In the assessment order, the assessing authority has accepted the purchases of used oil from unregistered dealer and from the Railway. No finding has been recorded that the purchased used oil lost .....

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..... has become non functional or non usable. 9. Thus, if the used oil possess the characteristic of oil and is usable as an oil, it cannot be treated covered under the entry of old discarded or unserviceable... . In the case of CST v. Roopji Sons, Arvindpuri, Meerut reported in STI 2003 Allahabad High Court 390, used oil has been held as covered under the entry of All Kinds of oil... and not covered under the entry of old, discarded, unserviceable... . This Court held as follows: So far as used oil is concerned it is not the case of the revenue that the used oil lost its characteristic of oil. Used oil only contains some impurity, but has all characteristic of oil and remains as oil. Entry of 'All kinds of oil..' is a wi .....

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