Tax classification of special boiling point spirit and shell hexane turns on the narrow scope of the special petrol entry.

Special boiling point spirit and shell hexane were analysed under the Kerala General Sales Tax Act, 1963 in light of the definitions of motor spirit and petrol, and the scope of Schedule I item 57B. The article states that item 57B was confined to petrol of the special brand having a flash point below 24.4 degrees centigrade, while other goods within the broader inclusive definition of motor spirit did not fall within that special entry. On a harmonious reading of the Act and schedule entries, such goods were treated as outside single-point tax under item 57B and within the multi-point scheme under section 5(1)(ii). Ambiguity in classification was to be resolved in favour of the assessee.

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Issues: Whether special boiling point spirit and shell hexane were liable to single-point tax under item 57B of Schedule I of the General Sales Tax Act, 1963, or to multi-point taxation under section 5(1)(ii) of that Act.

Analysis: Section 2(xv) defined motor spirit broadly and included petrol, while section 2(xvii) carved out only the special brand of petrol having a flash point below 24.4 degrees centigrade. Read with Schedule I, item 57A excluded petrol from the general motor spirit entry, and item 57B specifically dealt only with petrol of the special brand described in section 2(xvii). On a harmonious reading of the charging provision, the definitions, and the schedule entries, petrol not answering the special definition fell within the inclusive definition of motor spirit but outside item 57B. The Court further applied the principle that where two interpretations are possible, the construction more favourable to the assessee must be adopted.

Conclusion: The goods other than petrol of the special brand covered by item 57B were not liable to single-point tax under that item and fell under the multi-point scheme under section 5(1)(ii); the revision petitioner succeeded.

Ratio Decidendi: Where a taxing statute contains an inclusive definition and a special schedule entry, the special entry is confined to the goods expressly described in it, and any genuine ambiguity in classification must be resolved in favour of the assessee.

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