Common parlance test kept used transformer oil within petroleum products, making its sale taxable at the first stage.

Used transformer oil was treated as a petroleum product because taxing entries are construed in common parlance and commercial sense, not by scientific or technical meaning. Although the oil had been used as a lubricant and its strength had reduced, no material showed that it had ceased to retain that character or could not be used further as such. Mere diminution in quality was insufficient to remove it from the notified category. The sale of the used oil therefore remained exigible to tax at the first stage of sale, and the reference was answered against the assessee.

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Issues: Whether used transformer oil sold as waste and scrap retained its character as a petroleum product so as to attract tax at the first stage of sale under the Haryana General Sales Tax Act, 1973 read with the relevant notification.

Analysis: The expression used in a taxing entry must be understood in common parlance and commercial sense rather than in a scientific or technical sense. The transformer oil was originally a petroleum product and was used by the dealer as a lubricant. No material showed that after use it ceased to retain its character as a lubricant or that it could not be used further as such. Mere reduction in potentiality or strength after use was held insufficient to take it out of the notified category. Since the used transformer oil continued to be known and dealt with as a lubricant in trade, it fell within the notified expression "petroleum products" for levy at the first stage of sale.

Conclusion: The sale of used transformer oil was held exigible to tax as a petroleum product and the reference was answered against the assessee.

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