(1.) The Sales Tax Tribunal, Haryana (for short, "the Tribunal") has referred the following questions of law for the opinion of this Court :
(2.) In the return filed by it under the Haryana General Sales Tax Act, 1973 (for short, "the 1973 Act") for the assessment year 1988-89, the petitioner had shown sale of used transformer oil worth Rs. 2,68,403.85 to registered dealers, but did not pay tax in terms of section 18 read with Notification No. S.O. 156/H.A.20/73/S.18/87 dated December 30, 1987 on the premise that the same does not fall within the ambit of the expression "petroleum products". The Excise and Taxation Officer-cum-Assessing Officer, Ambala (hereinafter referred to as "the Assessing Authority") rejected the petitioner's plea and levied tax on the sale of used transformer oil by treating it as petroleum product. The first appeal filed by the petitioner was dismissed by the Joint Excise and Taxation Officer (Appeals), Ambala [for short, "JETC (A)"] and the second appeal filed by it was dismissed by the Tribunal by observing that even though, the potential of its lubrication may be substantially reduced, the transformer oil retains its character as a petroleum product.
(3.) Shri Rajesh Garg, learned Counsel for the petitioner, assailed the impugned orders by arguing that the used transformer oil cannot be subjected to tax under section 18 of the 1973 Act read with notification dated December 30, 1987 because the same is not a petroleum product. He emphasised that the petitioner had sold the used transformer oil as scrap at a throw-away price of Rs. 5 per litre and, therefore, the same cannot be taxed by being treated as petroleum product. He then argued that after its use in the transformers operated by the petitioner, the transformer oil does not retain its potentiality and character as a lubricant and, therefore, the same cannot be treated as a petroleum product for the purpose of levy of tax under section 18 read with notification dated December 30, 1987. In support of his argument, Shri Garg relied on the judgments of the Supreme Court in Indian Express (P.) Ltd. v. State of Tamil Nadu [1987] 67 STC 474, State of Kerala v. V. Padmanaban and Associated Cement Co. Ltd. v. State of M. P. .