Section 9 of the Central Goods and Services Tax Act, 2017/Section 9 of the Madhya Pradesh Commercial Tax Act, 1994 – Levy and collection of tax – General – Period 1-4-1997 to 31-3-1998 – Whether functions and composition of both ‘Brake Fluid’ and ‘Lubricating Oil’ are totally different as Brake Fluid performs same job as a mechanical braking system i.e. transferring force on brake pads fixed on brake drums and it not at all lubricates either brake or any part thereunder and, hence, by no stretch of imagination can Brake Fluid be treated as Lubricant – Held, Yes.
Whether thus ‘Brake Fluid’ cannot be taxed at 15 per cent as ‘Lubricants’ under Entry No. 9 in Part III of Schedule II to Madhya Pradesh Commercial Tax Act – Held, yes – Whether therefore, tax on Brake Fluid has to be charged by treating Brake Fluid under residuary entry being Entry No.1 of Part-VII of Schedule-II which is at rate of 8 per cent – Held, Yes
Citation:  95 taxmann.com 228 (Madhya Pradesh)