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TMI Blog1997 (4) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... Sales Tax Act, 1954 (in short, 1954 Act ) and the Central Sales Tax Act, 1956. The Commercial Tax Officer, Super Special Circle, Jaipur, is its assessing authority. On 3rd April, 1995, the Commercial Taxes Officer, Anti-evasion I, Jaipur, surveyed its factory. On June 6, 1996, he issued notice under sections 7B, 16(1)(e) and (i) of the 1954 Act read with sections 28, 58 and 65 of the Rajasthan Sales Tax Act, 1994 (in short, 1994 Act ). An interim reply was filed before the Commercial Taxes Officer. He directed to submit detailed reply. On June 18, 1996, detailed reply was filed, raising preliminary objections regarding jurisdiction. It has been stated that no case of evasion of tax is involved. Interpretation of the notifications issued by the State Government is involved. Final assessment order be passed instead of passing provisional assessment order. On 9th October, 1996 (annexure 6), provisional assessment order was passed levying tax of Rs. 63,41,228, penalty of Rs. 1,26,82,456 under section 16(1)(e) of the Act and interest of Rs. 30,43,791, totalling Rs. 2,20,67,475 and demand notice was issued accordingly. An appeal was preferred before the Deputy Commissioner (Appeals) I, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw. All these contentions have not at all been considered by the Deputy Commissioner (Appeals) while passing the order dated December 17, 1996 (annexure 5). In similar case, the Tribunal in original application No. 685 of 1986 Raj Solvex Ltd., Alwar v. Additional Commissioner, has granted stay. The hydrogenated vegetable oil is essentially an edible oil with the qualities of being edible and of being hardened. In the newspapers, the rates of vegetable ghee is published under the head edible oil . No question of penalty arises when the interpretation of rules or notification is involved. It can be imposed at the time of final assessment and not while passing provisional assessment. Reliance was placed upon [1995] 97 STC 238 (Raj) (Asst. Commercial Taxes Officer v. Kumawat Udhyog), [1994] 93 STC 239 (Raj) (C.T.O. v. Baran Co-operative Marketing Society Ltd. [1994] 93 STC 346 (Raj) (C.T.O. v. Birdhichand Banshidhar), [1992] 87 STC 362 (Raj) (Commercial Taxes Officer v. Rajdhani Wine), [1992] 87 STC 522 (Raj) (Commercial Taxes Officer v. Weston Electroniks Ltd.) and [1989] 74 STC 288 (Raj) (Commercial Taxes Officer v. Sojat Lime Co.). There was no question of mens rea. No question of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the Incentive and Deferment Scheme. Hydrogenated vegetable oil, seed oil and vegetable ghee are totally different commodities. They are produced after a lengthy scientific/chemical process/ operations, basically using edible oil . Tungabhadra Industries Ltd. v. Commercial Tax Officer [1960] 11 STC 827 (SC); AIR 1961 SC 412, is not applicable in these cases. The said Control orders are not applicable in these cases. They do not provide that hydrogenated vegetable oil is an edible oil . On the contrary, they say that they are different commodities. In common and commercial parlance, edible oil and vegetable ghee or hydrogenated vegetable oil are considered as different commodities. Industries manufacturing hydrogenated vegetable oil or vanaspati ghee were availing benefits under the Incentive and Deferment Schemes. The said control orders do not provide that the hydrogenated vegetable oil is an edible oil. The stay application has rightly been dismissed by a speaking order. The petitioner is not entitled to get any relief. The original applications deserve to be dismissed. 7.. Admittedly, appeals against the provisional assessment orders annexure 1 (in both the cases) an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... necessarily affect the identity of a substance as ordinarily understood. Thus for instance there are absorptions of matter and intermolecular changes which deteriorate the quality or utility of the oil and it might be interesting to see if such additions and alterations could be taken to render it any the less oil . Groundnut oil when it issues out of the expresser normally contains a large proportion of unsaturated fatty acids-oleic and linoleic-which with other fatty acids which are saturated are in combination with glycerine to form the glyceride which is oil. The unsaturated fatty acids are unstable, i.e., they are subject to oxidative changes. When raw oil is exposed to air particularly if humid and warm, i.e., in a climate such as obtains in Madras, oxygen from the atmosphere is gradually absorbed by the unsaturated acid to form an unstable peroxide (in other words the change involves the addition of two atoms of oxygen) which in its turn decomposes breaking up into aldehydes. It is this oxidative change and particularly the conversion into aldehydes that is believed to be responsible for the sharp unpleasant odour, and the characteristic taste of rancid oil. If nothing were ..... X X X X Extracts X X X X X X X X Extracts X X X X
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