Case: Indian Carbon Limited Vs. Superintendent of Taxes, Gauhati and Others

2. The appellants is a company incorporated under the Indian Companies Act 1956 in the State of Assam. It started its business on November 17, 1962 for the first time. The business includes sale and purchase of petroleum coke. Until September 1, 1964 no sales tax was levied or was payable by the company on the sale of petroleum coke because in Schedule 3 of the Assam Sales Tax Act 1947, hereinafter called the "Assam Act", which enumerated the goods on which tax was not payable. Entry 7 read "coal, coke and coaigas." By Amending Act 14 of 1964 the said Entry was deleted from Schedule 3 to the Assam Act with effect from September 1, 1964. By means of a letter dated July 7, 1964 the Superintendent of Taxes, Assam informed the company that the petroleum coke and gas were taxable at the rate of 5nP in a rupee under the Assam Act and directed the company to submit the return for all the periods prior to September 1, 1964 and also apply for registration under the Assam Act for the sale of petroleum coke within the State of Assam. The company preferred a petition for revision under sec. 31 (2) of the Assam Act challenging the order of the Superintendent of Taxes. This petition was dismissed by the Commissioner of Taxes on September 8, 1965. During the pendency of the said revision petition the Suprintendent of Taxes by his letter dated August 14, 1965 modified his earlier order to the extent that the demand was confined to the sale of petroleum coke subsequent to September 1, 1964. The company then moved the High Court under Art. 226 of the Constitution which was dismissed.

Court's reasoning:
6. We are wholly unable to agree with the reasoning or the conclusion of the High Court with regard to the ambit of clause (i) of section 14 of the Central Act. The language is clearly wide and coal has been stated to include coke in all its forms. It is not denied that petroleum is one of the forms of coke. Therefore on a plain reading of the aforesaid clause it is incomprehensible how petroleum coke can be excluded from its ambit. It may be that the clause mentions coal only and then declares that that word shall include coke in all its forms. That shows that the object of the words which follow coal is to extend its meaning. In the writ petition it was stated in para 2 that "coke is the refuse left after distillation of coal, shale or oil and is called petroleum coke, Metellurgical coke or pitch coke, to indicate its source or origin; but all these are carbonacious material used for the same purpose and having same properties, more or less, mainh andMoisture, "In the affidavit in opposition that was filed by the Assistant Commissioner of Taxes, Assam, this a statement which does not appear to have been properly denied. All that has been stated in para 5 is that the word "coke" in clause 9(i) of sec. 14 implies coke obtained from coal only and does not include petroleum coke. The statement in the writ petition is very similar to the meaning of the word "coke" given in Websters New International Dictionary, Vol. I which is as followsinfusible, cellular, coberent residue obtained when coal is subjected to destructive distillation. It consists mainly of carbon, is hard porous, and gray, and has a submettalic luster. Any similar substance left as a residue when petroleum, shale oil, etc., are distilled toattention has been invited by learned counsel for the State to the discussion in Encyclopaedi a Britannica, Vol. 5 on coke, coking and high temperatureWe do not consider that when the Parliament used the word "coke" in section 14(i) of the Central Act it had any intention to give it a meaning other than the ordinary dictionary meaning which would cover petroleum coke. At any rate, the language employed is so wide viz. "Coke in all its forms that petroleum coke which is a from of coke cannot possibly be excluded merely by reference to the word "Coal."