1990 (11) TMI 346 - SC - VAT and Sales Tax

Whether on the facts and in the circumstances of the case the Additional Judge (Revisions) was legally justified in holding the residual oil as groundnut oil simpliciter, even when it had undergone change in its properties by the admixture of chemicals and acids? Held that - Appeal dismissed. The High Court following the judgment of this Court in Tungabhadra Industries Ltd. v. Commercial Tax Officer 1960 (10) TMI 51 - SUPREME COURT OF INDIA came to the conclusion that the residue left, after going through the process of acids and chemicals, continues and remains to be the groundnut oil and is taxable at one per cent. We agree with the reasoning and the conclusions reached by the High Court. Appeal dismissed.

Summary

The Supreme Court held that the residue left after refining groundnut oil is still considered groundnut oil and taxable at one per cent, not six per cent. The High Court's decision was upheld, and the appeal was dismissed. (Case citation: 1990 (11) TMI 346 - Supreme Court)