INDIAN ALUMINIUM COMPANY LTD. versus ASST. COMMISSIONER OF COMMERCIAL TAXES (APPEALS) & ANR.

Citation: [2001] 1 S.C.R. 407 · Decided: 17-01-2001 · Supreme Court of India · Bench: B.N. KIRPAL · Disposal: Dismissed

Cited by 1 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

-
INDIAN ALUMINIUM COMPANY LTD. 
11. 
ASST. COMMISSIONER OF COMMERCIAL 
TAXES (APPEALS) & ANR. 
JANUARY 17, 200 I 
[B.N. KIRPAL AND RUMA PAL, JJ.] 
Karna/aka Tax on Entry of Goods Act, 1979: 
A 
B 
Entry I I First Schedule (as it stood prior to 1992)-Entry 67 First C 
Schedule (as amended in 1992)-Petroleum products-Furnace oil-Entry 
tax-levy of-Assessee sought to be taxed on the entry of furnace oil which 
was brought into the. State-Single Judge held that Entry tax was not 
leviable on furnace oil-During the pendency of appeal; Amending Act of 
1992 came into force which included furnace oil in Entry 67 in the First D 
Schedule-Division Bench held that Entries 11 and 67 contemplated the 
inclusion of furnace oil and, therefore, entry tax could be levied thereon-
Correctness of-Held: Petroleum products mean any type of petroleum 
product-Entry tax is leviab/e on all petroleum products unless specifically 
excluded-Furnace oil, being a petroleum product, and not specifically 
excluded, entry tax is /eviable thereon. 
E 
Words and Phrases: 
"And others "-Meaning of-In the context of Entry /I of the Karnataka 
Tax on Entry of Goods Act, 1979. 
The appellant was sought to be taxed on the entry of furnace oil, which 
was brought into the State by the appellant. The appellant, therefore, filed 
a writ petition before the High Court contending that Entry No. 11 in the 
First Schedule to the Karnataka Tax on Entry of Goods Act, 1979 did not 
permit levy of entry tax on furnace oil. A Single Judge of the High Court 
F 
allowed the writ petition. 
G 
During the pendency of the appeal before the Division Bench the Act 
was amended and Entry No. 67, corresponding to the earlier Entry No. 11, 
was included in the First Schedule to the Act. The Division Bench allowed 
the appeal on the ground that the original Entry No. 11 and the corresponding H 
407 
408 
SUPREME COURT REPORTS 
[200 I] I S.C.R. 
A Entry No. 67 of the First Schedule after amendment contemplated the inclusion· 
of furnace oil in the said Entry and, therefore, tax could be levied thereon. 
Hence this appeal. 
On behalf of the appellant it was contended that Entries Nos. 11 and 
B 67 did not mention furnace oil; and that the words "and others" occurring 
in the said Entries only qualify the word "tar" which precede the said words 
and, therefore, furnace oil could not be brought under the category "and 
c 
others". 
Dismissing the appeal, the Court 
HELD : I. Both Entries Nos. 11 and 67 in the First Schedule to the 
Karnataka Tax on Entry of Goods Act, 1979 mention "petroleum products: 
Whereas in Entry No. 11 the first words are "All petroleum products", the 
word "All" is missing in the new Entry No. 67. This, however, will not make 
any material difference because petroleum products would clearly mean any 
D type of petroleum product. The use of the words "and others" would, refer 
to petroleum products other than those which are specifically mentioned 
therein. What is, however, important is that the said entries specifically 
exclude aviation fuel, liquid petroleum gas, kerosene and naphtha for use in 
the manufacture of fertilizers. If the contention of the appel!ant is correct 
E that the words "and others" would not enable the inclusion of furnace oil in 
the said entries, then on the same parity of reasoning aviation fuel, liquid 
petroleum gas, kerosene and naphtha would also have to be regarded as not 
being included in the said entries and if this were so there was no need for 
their specific exclusion. The very fact that there is an exclusion clause, 
means that but for the said exclusion, aviation fuel, LPG, etc. would be 
F included in the said entries and as they are not specifically mentioned they 
would be covered by reason of the words "and others".(411-G-H; 412-A-BI 
2. Entries Nos. 11 and 67 further show that the legislature never 
intended to exclude furnace oil from the levy of entry tax. Had the intention 
G of the legislature been to exclude furnace oil, which admittedly is a petroleum 
product, then such an exclusion would have been indicated in the said entry 
itse!r har been done in the case of aviation fuel, LPG, kerosene and naphtha 
for use in the manufacture of fertilizers. The aforesaid entries are clear and 
unambiguous and clearly indicate the taxability of any type of petroleum 
product except those, which are specifically excluded by the said entries. 
H 
1412-C-DI 
INDIAN ALUMI. CO. LTD. ''·ASST. COMM. OF COMR. TAXES [K!RPAL, 

Excerpt shown. Read the full judgment & AI analysis in Lexace.