Petroleum product classification prevails for linear alkyl benzene where raw materials were petroleum-based and trade practice supported that view.

Linear alkyl benzene was held to be a petroleum product for classification under entry 32 of Schedule II, Part A of the Gujarat Sales Tax Act, 1969, rather than a chemical under entry 9. The court reasoned that it was produced from kerosene and benzene, both petroleum products, and that the emergence of a new commodity through mixing or manufacture did not alter its petroleum character where no non-petroleum ingredient was involved. The exclusion of kerosene from entry 32 did not mean it ceased to be a petroleum product. Trade understanding and excise treatment also supported the specific petroleum classification, so the reference was answered in favour of the assessee.

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Issues: Whether linear alkyl benzene sold by the assessee was a petroleum product falling under entry 32 of Schedule II, Part A of the Gujarat Sales Tax Act, 1969, rather than a chemical under entry 9.

Analysis: Linear alkyl benzene was found to be produced from two ingredients, kerosene and benzene, both of which were petroleum products. The mere fact that a new commodity emerged after a process of mixing and manufacture did not change its character when the raw materials themselves were petroleum products and no non-petroleum ingredient was involved. The exclusion of kerosene from entry 32 did not mean that kerosene ceased to be a petroleum product. The commodity was also understood in trade and by excise authorities as a petroleum product, supporting classification under the specific entry for petroleum products.

Conclusion: Linear alkyl benzene was correctly held to be a petroleum product covered by entry 32, and the reference was answered in favour of the assessee and against the Revenue.

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