RAO AND CO Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) In this revision presented under S. 23(1) of the Karnataka Sales-tax Act, 1957 the following question of law arises for consideration: Whether carbon dioxide falls under Entry 121 of the Second Schedule of the Karnataka Sales-tax Act, 1957, for purposes of levy of tax under the said Act?"

(2.) The facts of the case are as follow: The petitioner deals in industrial gases like oxygen, nitrogen etc., The assessment year is 1973-74. The sales turnover of the petitioner relating to carbon dioxide was brought to tax under S. 5(1) of the Karnataka Sales-tax Act, 1957 (hereinafter referred to as 'the Act') at the rate of 3% by the assessing authority. The Deputy Commissioner was of the opinion that the order of the assessing authority was erroneous and prejudicial to the revenue. Therefore in exercise of his power under S. 21 of the Act he proposed to revise the order, as in his opinion carbon dioxide was liable to tax at 6% under Entry 121 of the Second Schedule to the Act. The said Entry reads as follows: "Industrial gas, such as oxygen, acetylene, nitrogen and the; like." Before the revisional authority the petitioner contended that carbon dioxide was used only in the preparation of aerated water and cannot be considered as an industrial gas. The contention of the petitioner was rejected. The further appeal of the petitioner was rejected. The further appeal of the petitioner before the Appellate Tribunal also failed. Thereafter the petitioner has presented this revision petition.

(3.) Sri K. Srinivasan, learned counsel appearing for the petitioner, contended that though it cannot be disputed that carbon dioxide is an industrial gas, the same cannot be taxed under Entry 121 of the Second Schedule for the reason that apart from merely specifying 'industrial gas', the entry proceeds to state 'such as oxygen, acetylene, nitrogen and the like'. He, therefore, contended that any other industrial gas cannot be brought under Entry 121. He submitted that the principle of ejusdem generis should be applied and consequently any industrial gas which is combustible like oxygen and acetylene, alone could be brought under Entry 121 of the Second Schedule.