9911796707
TMI Blog2002 (8) TMI 826X X X X Extracts X X X X X X X X Extracts X X X X ..... at Kesarpura, Sheoganj. The company is registered under the provisions of the Rajasthan Sales Tax Act, 1994 (hereinafter referred to as "the RST Act") and the Central Sales Tax Act, 1956 (hereinafter referred to as "the CST Act"). The State of Rajasthan with a view to promote edible oil industries issued a notification dated December 26, 1986 in exercise of powers under section 8(5) of the CST Act extending the benefit to certain categories of the industries in the form of concessional rate of tax on the sale of edible oil. In order to promote solvent extracted oil industries the State Government on June 27, 1990 issued a notification under section 4(2) of the RST Act giving relief to certain categories of industries in the form of concess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1997 raising a demand of Rs. 4,07,607. 4.. The order of the assessing authority was challenged before the Rajasthan Taxation Tribunal on the ground of violation of principles of natural justice. On merits, it was submitted that the case of the company falls within the four corners of the notification dated June 27, 1990 which exempts it from the tax. It was argued on behalf of the assessee-company that term "edible oil" includes solvent extracted edible oil which is the product of the company and since tax at the rate of 1.5 per cent as specified in the notification has already been paid, therefore, the authority had no jurisdiction to pass the reassessment order. It was also contended that no reassessment proceeding could be initiated un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment order. In the another appeal reference has been made to the notification dated December 26, 1986 issued by the State Government under section 8(5) of the CST Act in place of notification dated June 27, 1990. 5.. The Tribunal held that solvent extracted edible oil falls within the category of all kinds of edible oils in terms of notification dated June 27, 1990. The Tribunal also held that the notification is very wide in its amplitude and takes within its protective umbrella all kinds of oils which can be described or treated or regarded as edible oils. Thus, in the opinion of the Tribunal, solvent extracted oil is also an edible oil. It was also held that it may not be fit for direct human consumption, but after its being sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and removing of fatty acids. The oil which is extracted from edible oil seeds is edible even without refining. The learned counsel has placed reliance on (i) decision of the Punjab and Haryana High Court in Milkhi Ram Oil Dall Mills v. State of Punjab reported in [1992] 84 STC 206, (ii) decision of the Allahabad High Court in Chandausi Oil Mills v. Sales Tax Commissioner, U.P. reported in [1961] 12 STC 310 and (iii) decision of the apex Court in Champaklal H. Thakkar v. State of Gujarat reported in AIR 1980 SC 1889. It is also submitted by the learned counsel that in absence of the definition of edible oil in the Act, the meaning given to the expression under the various other statutory provisions should be adopted. He has referred to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he oil manufactured cannot be said to be for human consumption or an edible oil. The oil manufactured by the respondent-company after being subjected to decolourising, deodourising and exclusion of fatty acids therefrom it becomes fit for human consumption does not make the unit to claim the benefit under the notification dated June 27, 1990, inasmuch as, the incidence of tax on sale and the entitlement of the unit has to be examined as on the date of the sale is made. Admittedly, while effecting the sale of the oil sold by the respondentcompany it was not edible and, therefore, even if the oil manufactured after being subjected to certain process it becomes edible oil it will not make entitlement to claim the benefit of concessional rate o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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