9911796707
TMI Blog1960 (1) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... m recovering that amount. 2.. The petitioner-company carries on the business of extracting oil by mechanical process from oil seeds, such as groundnut, tilli, etc., and of selling the oil so extracted. During the material period the petitioner sold vegetable oil to the Indore Oil Mills Private Ltd., the turnover of which was determined by the Sales Tax Authorities at Rs. 1,06,983 for the purpose of assessment of sales tax. On this turnover the amount of sales tax imposed was Rs. 1,671-9-9. The Indore Oil Mills Private Ltd., own a factory where they manufacture refined oil and other products. The petitioner-company was liable to pay sales tax in respect of the sale of oil to the Indore Oil Mills Private Ltd., under item No. 2 of the notific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel for the petitioner, argued that having regard to the fact that by the notification dated the 11th September, 1950, issued under section 4(3) of the Act, which was cancelled by the subsequent notification No. 75/7 S. R. 55(51) dated the 24th November, 1953, sale of oil to the manufacturer of refined oil was exempt from tax, and regard being had to the fact that whenever it was intended to connote a narrow meaning of the words "vegetable oil" it was done by using express qualifying words, the Sales Tax Officer was not justified in giving a narrow meaning to the words "vegetable oil" while construing the exemption provision. It was said that the words "vanaspati industry (vegetable oil)" as used in the exemption provision, meant an indust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... November, 1953. The charging provision uses the expression "All types of vegetable oils (excluding hydrogenated oils)". The word "excluding" is significant. The use of the words "excluding hydrogenated oils" shows that in that provision the words "vegetable oils " have a wide meaning and cover vegetable oil of any kind including hydrogenated oil. It is note-worthy that in another notification No. 59/7/S.R. 55(51) dated the 24th October, 1953, issued under section 5 of the Act the words "vegetable oil" have been expressly qualified by the use of the word "hydrogenated" while imposing sales tax at the rate of Rs. 6-4-0 per cent. ad valorem. Item No. 33 of Schedule III of that notification runs as follows: "Vegetable Oil (Hydrogenated) includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vegetable oils in industries. Vegetable oils are used in paint and varnish industry, in soap industry, in biscuit industry and some medicinal preparations. Castor oil is used for manufacture of lubricants on a large scale. Chalmoogra, and other allied oils are of medicinal value and have curative effects on leprosy. Vegetable oils are also used in the manufacture of salad oil, artistri oil and hair oils and other cosmetics, and as is well-known these oils are also used in the manufacture of ghee and cooking fat. There is no chemical distinction between vegetable oils and fats. They consist primarily of glycerides which are the esters formed by three molecules of fatty acids with one molecule of glycerol. Oils are usually liquid at ordinary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on dated the 24th November, 1953, that the object was to grant exemption to the sales of vegetable oils for industrial purposes in order to promote the use of vegetable oils in industries. The schedule no doubt specifies some industries, such as paint and varnish industry, soap industry, biscuit industry, in which vegetable oils are used as one of the raw materials. As it is impossible to enumerate the various industries in which vegetable oils constitute the chief raw material, the expression "vanaspati industry (vegetable oil)" was adopted for covering all such industries and for exempting the sale of vegetable oil required by them. In our opinion, the expression "vanaspati industry" is wide enough to include an industry engaged in the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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