TaxTMI 
TaxTMI 
2011 (3) TMI 1396
X X X X Extracts X X X X
X X X X Extracts X X X X
.... oils. Among the various industrial speciality oils manufactured by the assessee are metal cutting and machining oils broadly known as "cutting oils" which are being marketed by the assessee under the brand name "Koolkut" and "Trimofin". These oils are manufactured predominantly from refined base stocked produced at the assessee's refinery at Trombay mixed with certain additives to meet the end-use requirements. "Koolkut" and "Trimofin" grade of cutting oils cover a wide range of water mix and straight cutting oils for different applications in the metal working and other types of processing industries in the country. The wide range of cutting oils enable the selection of an oil, meeting the exact requirements of specific cutting operations for achieving high speed of cutting with good work finish and longer tool life. The "Koolkut" grades of cutting oils cover, in particular, the water mix type of cutting fluids recommended to be used in admixture with water, the proportion varying from 20 parts to 100 parts of water per part of oil depending upon the end-use. The essential function of "Koolkut" grades of cutting oils is as coolant and for rust-prevention and these oils are re....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the Act, being a "petroleum product" other than "lubricants". The question sought for determination was whether the sales of "cutting oils" evidenced by invoice No. 4062 dated June 10, 1983 is covered by entry 32 of Schedule IIA to the Act and attracts sales tax at the rate of 5 per cent, ad valorem as prescribed therein. The said question was answered in the negative by the Deputy Commissioner of Sales Tax (Audit), by his order dated July 27, 1984 who, inter alia, held that 'the product "cutting oils" evidenced by invoice dated June 10, 1983 was a lubricant covered by entry 15 of Schedule IIA to the Act and was liable to tax at the rate prescribed therein. Against the order of determination under section 62 of the Act, the assessee went in appeal to the Tribunal under section 65 of the Act, who vide order dated July 20, 1987, allowed the appeal and set aside the determination order passed by the Deputy Commissioner of Sales Tax (Audit) and held that the sale of "cutting oils" evidenced by invoice No. 4062 dated June 10, 1983 was covered by entry 32 of Schedule II, Part A to the Gujarat Sales Tax Act, 1969 (the Act) attracting sales tax at the rates prescribed therein. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rlance. In support of the submission, reliance was placed upon the decision of the Supreme Court in the case of Indo International Industries v. Commissioner of Sales Tax, Uttar Pradesh [1981] 47 STC 359 (SC) for the proposition that if any term or expression has been defined in the enactment, then it must be understood in the sense in which it is defined but in the absence of any definition being given in the enactment the meaning of the term in common parlance or commercial parlance has to be adopted. Reliance was also placed upon the decisions of the Supreme Court in the case of Delhi Cloth and General Mills Co. Ltd. v. State of Rajasthan [1980] 46 STC 256 (SC) and in the case of Atul Glass Industries (P.) Ltd. v. Collector of Central Excise [1986] 63 STC 322 (SC). The assessee further sought to distinguish various products like industrial lubricating oils and industrial specialties. It was submitted before the Tribunal that the term "industrial lubricating oils" defines that efficient lubrication is the proper selection and application of lubricant which effectively and economically meets a given operating condition. Much of today's modem machinery operates at high ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....foresaid test, the court was of the opinion that the clinical syringes manufactured and sold by the assessee therein should not be considered as "glassware", falling within entry 39 of the First Schedule to the U. P. Sales Tax Act, 1948. In the case of Delhi Cloth and General Mills Co. Ltd. v. State of Rajasthan [1980] 46 STC 256 (SC), the Supreme Court held that in determining the meaning or connotation of words and expressions describing an article or commodity, the turnover of which is taxed in a sales tax enactment, if there is one principle fairly well-settled, it is that the words or expressions must be construed in the sense in which they are understood in the trade, by the dealer and the consumer. It is they who are concerned with it, and it is the sense in which they understand it that constitutes the definitive index of the legislative intention when the statute was enacted. In the case of Atul Glass Industries (P.) Ltd. v. Collector of Central Excise [1986] 63 STC 322 (SC), the court was considering the question as to whether glass mirrors fall under tariff item No. 23A(4) or tariff item No. 68 of the First Schedule to the Central Excises and Salt Act, 19....