VEERASWAMI, J.

These cases raise the question of the scope of entry 47 in Schedule I to the Madras General Sales Tax Act, 1959, more specifically whether the entry includes furnace oil. Besides, certain subsidiary questions also arise, which in most part are covered by authority. The assessee is the Burmah Shell Oil Storage and Distributing Company of India, Limited, which has been assessed to sales tax for the assessment year 1964-65. In the first of these cases, there are four items of turnover, a sum of Rs. 2, 08, 52, 235.42 representing the turnover of sales of furnace oil, Rs. 22, 234.59 being the turnover of canteen sales, Rs. 1, 97, 917.20 representing sales of publicity materials, and the last a sum of Rs. 29, 660.00 being the aggregate sales of scrap. In respect of the turnover of sales of publicity materials, a penalty of Rs. 1, 000 was levied on the ground that there was a failure to return that amount. The assessing officer considered that furnace oil fell within the ambit of item 47 and brought them to tax at 6 per cent. On the view that the other items of turnover constituted sales in the course of business, they too were charged to tax. The assessee has failed throughout, the Tribunal taking the view that furnace oil as mineral oil was well within the ambit of the entry and that the other items of turnover represented sales effected by the assessee as a dealer in the course of its business. In the other two tax cases also the question as to the scope of entry 47 arises in relation to furnace oil, and an additional point in T.C. No. 110 of 1967, is as to the taxability of the sales of scrap.

Entry 47 as it originally stood was "lubricating oils and greases". The entry as amended by Madras Act VII of 1964, which came into effect from April 1, 1964, reads :

"Lubricating oils, all kinds of mineral oils (not otherwise provided for in this Act), quenching oils and greases." *

It is not disputed for the revenue that furnace oil is not a lubricant. Under the head of "Lubrication" in Van Nostrand's Scientific Encyclopaedia, this is what is stated at page 888 :-

"Lubricants are employed in engineering practice for two reasons : (1) to diminish friction between the moving surfaces of machine parts; and (2) to decrease friction between a cutting tool and the material to be cut, and at the same time serve to dissipate the heat developed in the machining operation. When the heat-dissipating function is of primary importance, the lubricant is usually referred to as a coolant.

Lubricants may be classified either by state as liquid, semi-solid, or solid, or by origin as mineral, vegetable, or animal ...........

Mineral oils are refined from crude oil by separating and purifying the various heavy components of the crude ......... the methods of treatment vary widely." *

In that sense, fuel oil is obviously not a lubricant. In fact, it is a combustible article used in industry for fuel purposes which may be varying in character. But the revenue's point of view is that although fuel oil is not a lubricant, it being mineral oil, it squarely falls within the ambit of the words "all kinds of mineral oils" in entry 47.

For the assessee it is urged that those words in the context of the words preceding and following should be given a limited meaning and be understood as "all kinds of mineral oils which are lubricants". This construction is sought to be supported in two ways, one by reference to the objects and reasons of the amendment by Act VII of 1964, and the other by the aid of the ejusdem generis rule.In the statement of objects and reasons, it was said :

"Under item 47 in the First Schedule to the said Act, 'lubricating oils and greases' are liable to a single point tax at the point of first sale in this State. A doubt has been raised whether soluble quenching oil which is a mineral oil and which is used as a lubricating oil would fall under the said item 47. It has, therefore, become necessary to amend the said item 47, so a