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Challenge to the applicability of the Vegetable Oils Cess Act, 1983 on industries employing solvent extraction plant technology for extracting oil from rice bran. Analysis: The petitioners, U.P. Solvent Extractors' Association, Kanpur, sought direction from the court to prevent the enforcement of the provisions of the Vegetable Oils Cess Act, 1983 on industries using solvent extraction plant technology for extracting oil from rice bran. The Act was contended to be inapplicable to them. The process of extracting oil from rice bran involves utilizing rice bran obtained from rice mills as raw material. Rice bran is described as the outer layer of rice grains separated during the rice milling process. The extracted oil, used for soap manufacturing, is not suitable for human consumption. The central question was whether the petitioners, extracting oil from rice bran, could be subjected to a cess under Section 3 of the Vegetable Oils Cess Act, 1983. The Act imposes a levy on vegetable oils without explicitly defining the term "vegetable oils." However, it refers to the definition provided in the National Oil Seeds and Vegetable Oils Development Board Act, 1983. According to the latter Act, vegetable oils are defined as oils produced from oilseeds or other oil-bearing plant materials containing glycerides. The court delved into the interpretation of the term "oilseeds or any other oil-bearing material of plant origin" within this definition. The common understanding of "vegetable oil" was explored, emphasizing that it typically refers to oils derived from oilseeds or plant materials. The court examined whether rice bran could be categorized as a vegetable oil under the statutory definition. It was noted that rice bran, being a by-product of rice, does not fall under the conventional definition of oilseeds or oil-bearing plant materials. While acknowledging the legislative authority to assign artificial meanings to terms, the court concluded that rice bran does not align with the characteristics of vegetable oil as defined in the Acts. Rice bran, a by-product of rice milling, does not qualify as an oilseed capable of germination or as oil-bearing plant material. Therefore, the court ruled that no cess was chargeable on oil extracted from rice bran. Additionally, the preliminary objection raised by the respondents regarding the maintainability of the petition due to the association's registration status was dismissed. The court upheld the widened concept of locus standi, allowing the petition to proceed. Consequently, the petition succeeded, and a direction was issued restraining the collection of cess from the petitioners' association members on oil produced from rice bran. No costs were awarded in the matter.
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