IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN TUESDAY, THE 26TH AUGUST 2008 / 4TH BHADRA 1930 ST.Rev..No. 123 of 2008() ------------------------- TA.132/2007 of STAT ADDL.BENCH, KOTTAYAM .................... REVISION PETITIONER --------------------------------------- M.VIJAYAN, PROPRIETOR, IBC PETTRO ALANCHERIL BUILDINGS, NEAR MATHA HOSPITAL, THELLAKOM P.O. M.O.ROAD, ETTUMANOOR - 686 016. KOTTAYAM DISTRICT. BY ADV. SRI.MILLU DANDAPANI RESPONDENT(S): --------------- 1. THE COMMERCIAL TAX OFFICER, ETTUMANOOR, KOTTAYAM DISTRICT. 2. THE DEPUTY COMMISSIONER (APPEALS) COMMERCIAL TAXES, QUILON. 3. THE KERALA GENERAL SALES TAX APPELLATE TRIBUNAL, ADDITIONAL BENCH, KOTTAYAM. 4. STATE OF KERALA, REPRESENTED BY THE SECRETARY, DEPARTMENT OF COMMERCIAL TAXES, GOVERNMENT SECRETARIAT, TRIVANDRUM 695001. BY G.P. SRI.TEKCHAND THIS SALES TAX REVISION HAVING BEEN FINALLY HEARD ON 26/08/2008, THE COURT ON 26/08/2008 DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & V.K.MOHANAN, JJ. .................................................................... S.T.Rev. No.123 of 2008 .................................................................... Dated this the 26th day of August, 2008. JUDGMENT Ramachandran Nair, J. The question raised in the revision case filed by the assessee is whether petroleum jelly is taxable as a petroleum product under Entry 108 (vi) or a chemical under Entry 33 of the First Schedule to the KGST Act. The Tribunal upheld 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 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: -------------------------------------------------------------------------------------------- Sl.No. Description of Goods Point of Rate of levy tax-% -------------------------------------------------------------------------------------------- 33. Chemicals including caustic soda, At the point of 12 caustic potash, sodaash sodium first sale in the sulphate, sodium silicate, sulphur, State by a dealer chemical components and mixtures who is liable to not elsewhere classified in this tax under section 5. Schedule. -------------------------------------------------------------------------------------------- 2 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 petitioner takes the stand that petroleum product is a chemical is that Notification SRO 1091/1999 modified by SRO 1541/1999 provides for concessional rate of tax on chemicals including petroleum jelly. Since concessional rate is granted to petroleum jelly along with other rubber chemicals, 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 3 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. C.N.RAMACHANDRAN NAIR Judge V.K.MOHANAN Judge pms