The judgment of the Court was delivered by

MANCHANDA, J. - This is a case stated under section 11(1) of the U.P. Sales Tax Act (hereinafter referred to as the Act). The question referred is :

"Whether the oxygen so prepared is a chemical liable to be taxed under section 3-A at the rate of 0-1-0 anna per rupee or it is medicine liable to be taxed under section 3 at a reduced rate ?"

The material facts are these : The assesses manufactures, inter alia, oxygen gas and also welding apparatus and stores and sells them. The assesses prepares the oxygen by the industrial process known as fractional distillation of liquid air. In other words air is first liquified and then the other gases are allowed to escape and pure oxygen is obtained. The oxygen so produced is sold by the assesses for purposes of welding metals and also for the use of medicinal purposes in the treatment of pneumonia, bronchitis etc. There is no material on the the record as to what quantity was sold for medicinal or welding purposes. The total turnover of gases which include acetylene gas was Rs. 3,92,384.67 nP. It was claimed that gases manufactured were not chemicals and therefore did not fall to be taxed at single point under item 7, "chemicals of all kinds", of the Notification No. ST-905/X, dated 31st March, 1956. This claim was rejected and the gases wee assessed at the rate of 0-1-0 anna per rupee as provided in the said notification. On appeal, the Judge (Appeals) accepted the contention of the assesses and held that (1) oxygen was an element and had no chemical action on other things, and (2) that it is used for medicinal and welding purposes. He, therefore, was of the view that it was not a chemical but an unclassified item assessable under section 3. The department took the matter up in revision and the Judge (Revisions) allowing the revision held that (1) oxygen can be prepared by chemical process; (2) it is used in chemical operations, and therefore, it can be classified as a chemical. In this view of the matter he did not consider it necessary to go into the question as to the use to which oxygen could be put, i.e., whether as a chemical as such or for medicinal purposes. Hence, this reference at the instance of the assesses.

The short question that falls for consideration is whether (1) oxygen is a chemical, and (2) though a chemical yet, if it also falls under another list where the incidence of tax is less, can that other list also be taken into consideration ?

The words used in item 7 of the said notification are indeed very wide. They are "chemicals of all kinds". The intention apparently was to leave out no chemicals from this list. The question, however, is as to what is a chemical ? Now when the word "chemical" is used in a taxing statute with which commercial men have to deal with, it may not always be right to give the technical or dictionary meaning thereof. The meaning of such words requires to be such as is commonly understood by commercial men who use such articles. If strictly technical meaning is given to the word "chemicals" then perhaps many substances such as coal, sugar, salt, salt-petre etc. would satisfy the meaning and be assessable at single point and not under the general classification. Unfortunately in the present case there is no evidence as to what meaning commercial men attribute to the word "chemicals." Therefore, there is no alternative but to go to the dictionary meaning of the word. In Shorter Oxford English Dictionary, Vol. 1, the word chemical means "relating or belonging to chemistry; obtained by chemistry. A substance obtained or used in chemical operations." In Webster's Third New International Dictionary, the meaning given is "relating to applications of chemistry : as acting or operated by chemical means or synthesized from chemicals : suitable for use in or used for operations in chemistry : having reference to or relating to the science of chemistry."

There cannot be the slightest doubt that oxygen