VIJAYAN M Vs. COMMERCIAL TAX OFFICER ETTUMANOOR

JUDGEMENT

(1.) The question raised in the revision case filed by the assessee is whether petroleum jelly is taxable as a petroleum product under entry 108(6) or a chemical under entry 33 of the First Schedule To The Kerala General Sales Tax Act, 1963.The Tribunal upheld the assessment of petroleum jelly as a petroleum product against which this revision is filed. We have heard counsel appearing for the petitioner and Government Pleader for the respondents.

(2.) The contention raised by counsel for the petitioner is that petroleum jelly is a chemical falling under entry 33 and therefore, the same will not fall under entry 108 which covers petroleum products. Entry 33 is as follows: <p>------------------------------------------------------------------------------- Sl. Description of goods Point of levy Rate of No. tax-% ------------------------------------------------------------------------------- 33. Chemicals including caustic soda, caustic At the point 12 potash, sodash, sodium sulphate, sodium of first sale in silicate, sulphur, chemical components the State by a and mixtures not elsewhere classified dealer who is in this Schedule. liable to tax under Section 5. -------------------------------------------------------------------------------

(3.) Petroleum jelly is not specifically covered by entry 33. On the other hand, entry 108 of the First Schedule which provides for tax on petroleum products after providing different rates for HP diesel oil, kerosene, etc., provides for tax on other petroleum products "not elsewhere mentioned in this Schedule or in the Second Schedule". By virtue of this residuary entry, all petroleum products not elsewhere mentioned in the Schedule will fall under the said sub-entry of entry 108. The petitioner has no dispute that petroleum jelly is not a petroleum product as it is a product obtained from crude oil, the source of all petroleum products except natural gas. The reason why the petitioner takes the stand that petroleum product is a chemical is that Notification S. R. O. No. 1091 of 1999 modified by S. R. O. No. 1541 of 1999 provides for concessional rate of tax on chemicals including petroleum jelly. Since concessional rate is granted to petroleum jelly along with other rubber chemicals, the petitioner's case is that petroleum jelly is also a chemical. The Tribunal on considering this contention held that concessional rate applies to petroleum jelly also under the notification only by virtue of specific inclusion therein and not because it is a chemical. We are in agreement with the Tribunal's view that merely because concessional rate is provided for petroleum jelly along with chemicals, it cannot be treated as a chemical. It is open to the Government to grant exemption or concessional rate of tax on any goods subject to such conditions which the Government deems fit. Petroleum jelly was granted concessional rate along with rubber chemicals probably because petroleum jelly is also used in rubber industry as a raw material. However, the concession so granted specifically does not consign petroleum jelly from entry 108(vi) of the First Schedule to entry 33 or any other entry of this Schedule. We, therefore, hold that petroleum jelly is a petroleum product falling under residuary entry (vi) of entry 108 of the First Schedule to the KGST Act. Consequently this revision is dismissed.