9911796707
TMI Blog1984 (9) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... reads: "No. S.O. 1/C.A. 74/56/S. 8/E/79. Whereas the Government of Punjab is satisfied that it is necessary in the public interest so to do; Now, therefore, in exercise of the powers conferred by sub-section (5) of section 8 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956), and all other powers enabling him in this behalf, the Governor of Punjab is pleased to direct that the tax payable by any dealer having his place of business in the State of Punjab in respect of the sales made by him, of edible oils from any such place in the course of inter-State trade or commerce to any registered dealer having his place of business in any other State or Union Territory of India, shall be calculated at the rate of one per cent of his turn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sited at the rate of 1 per cent on rice bran oil. This is perhaps being done under the impression that rice bran oil sold by Punjab dealers in the course of inter-State trade is an edible oil. Our enquiries have, however, established that only a negligible proportion of this oil falls in the category of edible grade oil. That is to say that rice bran oil produced in Punjab is not edible grade and should, therefore, be taxed at the general rate, i.e., at the rate of 1 per cent or 4 per cent, if it is sold to a registered dealer of other State against C form. It may be mentioned here that the dealers/manufacturers take shelter for depositing less tax under the plea that rice bran oil is a vegetable oil and the Government of India has allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that thorough scrutiny of cases be made in the light of facts narrated above before finalising assessments in such cases. It may be ensured that pending assessments are finalised in the light of these instructions within the current financial year and tax wherever due is recovered." The petitioner has also prayed that the communication P. 11 be quashed. The learned counsel for the petitioner has argued that rice bran oil is edible and the Assessing Authority has wrongly held in the impugned assessment order that it is not edible. Reliance has been placed on the orders of the Ministry of Commerce and Civil Supplies, Government of India, dated 29th August, 1979 (P. 1), dated 26th December, 1980 (P. 2), and 27th October, 1977 (P. 3), issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es). Rule 5 of the Rules reads: "Standards of quality of the various articles of food specified in appendix B to these rules are as defined in that appendix." Item A. 17.23 of appendix B reads: "Rice bran oil means the oil obtained from the layer around the endosperm of rice obtained from paddy of oryza sativa linn, fam graminea, which is removed during the process of rice milling and is generally known as rice bran. Refined rice bran oil shall be obtained from solvent extracted oil, neutralised with alkali, bleached with bleaching earth or activated carbon or both and deodorised with steam. Alternatively deacidification, bleaching and deodorisation may be done by physical means. The oil shall be clear and free from rancidity, adulteran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecomes edible after it is mixed with refined sesame oil and undergoes the process for the manufacture of edible vegetable oil products like vegetable ghee. It is, therefore, difficult to agree with the contention of the learned counsel for the petitioner that since a specified percentage of rice bran oil is permitted to be used for the manufacture of edible vegetable oil products it should also be treated edible in terms of the notification dated 11th January, 1979 (P. 5). The learned counsel for the petitioner has argued that the Assessing Authority has not recorded a firm finding in the impugned assessment order that the rice bran oil sold by the petitioner in inter-State sales was not refined. The impugned assessment order is liable to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o is likely to be influenced by the views expressed by the Excise and Taxation Commissioner in the communication P.11. It is futile to file an appeal against the impugned assessment order because it cannot be treated an effective or meaningful alternative remedy. The contention of the learned counsel for the petitioner is without force. The Assessing Authority has neither relied upon nor referred to communication P.11 in the impugned assessment order. It is not disputed that the views expressed in the communication P.11 are not binding either on the Assessing Authority or the Deputy Excise and Taxation Commissioner. This apart, second appeal lies to the Sales Tax Tribunal which is an independent authority. The petitioner, therefore, can av ..... X X X X Extracts X X X X X X X X Extracts X X X X
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