Strict construction of taxing entries bars entry tax on rubber processing oil absent clear inclusion in the notification.

Rubber processing oil was held not to fall within the petroleum products entry in the relevant notification because it was not specifically named, and taxing liability cannot be imposed by presumption, implication or intendment. The notification of 30.03.2002 listed products such as lubricating oil, transformer oil, brake fluid, clutch fluid, bitumen and tar, but omitted rubber processing oil. As no clear coverage existed within the charging entry and the clarification dated 05.12.2012 gave no reasons supporting the levy, the reassessment and entry tax demand could not be sustained. The challenge to the levy succeeded, and the intra-court appeal was rejected.

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Issues: Whether rubber processing oil fell within the entry for petroleum products in the relevant notification so as to attract entry tax, and whether the reassessment and clarification levying such tax could be sustained.

Analysis: The Notification dated 30.03.2002 specifically enumerated petroleum products such as lubricating oil, transformer oil, brake fluid or clutch fluid, bitumen and tar and others, but did not mention rubber processing oil. In a taxing statute, liability cannot be imposed by intendment or presumption, and only what is clearly brought within the charging entry can be taxed. Since the product did not find place in the relevant entry, and no reasons were assigned in the clarification dated 05.12.2012, the levy could not be sustained.

Conclusion: The levy of entry tax on rubber processing oil was not justified and the challenge to the reassessment succeeded.

Final Conclusion: The intra-court appeal was rejected and the order quashing the levy of entry tax on rubber processing oil was left undisturbed.

Ratio Decidendi: A product cannot be subjected to entry tax unless it is clearly covered by the relevant taxing entry, and fiscal liability cannot be created by presumption, implication or intendment.

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