1980 (11) TMI 137

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.... M.P. General Sales Tax Act, 1958?" 2.. The facts giving rise to this reference briefly stated are as follows: The assessee, M/s. Burmah Shell Oil Storage and Distributing Company, was assessed to sales tax under the Act for the calendar year 1967. Mineral turpentine worth Rs. 72,135 was sold by the assessee and tax was paid on this sale at the rate of 7 per cent. The assessing authority held that tax was payable on mineral turpentine oil at the rate of 11 per cent under entry No. 25 of Part II of Schedule II to the Act. The assessee contended that this sale was liable to tax at the rate of 7 per cent under entry No. 39 of Part II of Schedule II. On appeal preferred by the assessee the Deputy Commissioner of Sales Tax confirmed the order....

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....9.. All kinds of petroleum products and mineral oils including kerosene oil except those which are liable to tax under the Madhya Pradesh Sales of Motor Spirit and Lubricants Taxation Act, 1957." The Board of Revenue considered the meaning of the word "turpentine oil" as given in Webster's Third New International Dictionary, 1961 edition, and of the word "mineral oil" as given in the said dictionary and came to the conclusion that the mineral turpentine oil sold by the assessee fell within entry No. 39 of Part II of Schedule II to the Act. The meaning of the words "turpentine oil" and "mineral oil" as given under Webster's dictionary is as follows: "Turpentine oil: the colorless or slightly yellowish mobile flammable pungent biting es....

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....isagreeable taste. It is a good solvent for sulphur, phosphorus, resins, Waxes, oils, and natural rubber. On exposure to air, it hardens and may convert the oxygen into peroxides. Chemically, oil of turpentine is a mixture of cyclic monoterpene hydrocarbons, the predominant constituent being pinene.   The largest use for spirit of turpentine is as a paint and varnish solvent. Painters prefer 'turps' as a paint thinner and brush cleaner even though paint manufacturers use the cheaper petroleum solvents as thinners. Spirit of turpentine is used as a solvent for waxes and polishes and as an intermediate in the preparation of synthetic camphor, synthetic pine oil, oil additives, insecticides, and synthetic resins. A purified form of ....