Commercial meaning of edible oil governs tax classification of crude maize oil used for human consumption.

Where a taxing statute does not define "edible oil," the commodity must be understood in its ordinary and commercial sense. Maize (corn) oil sold in crude form was treated as edible oil because the applicable storage control order covered oil used directly or after processing for human consumption, the Central Government notification recognised maize oil for use in vegetable oil manufacture, and the buyers' specifications showed that such use was intended. Food adulteration standards were not decisive because they served a different regulatory purpose. The oil therefore qualified for the concessional sales tax rate applicable to edible oil.

---

---

Issues: Whether maize (corn) oil manufactured and sold in crude form is an edible oil for the purposes of sales tax.

Analysis: The term "edible oil" was not defined in the taxing enactments, so it had to be construed in its ordinary and commercial sense. The Court relied on the statutory definition in the Pulses, Edible Oil Seeds and Edible Oils (Storage Control) Order, 1977, which treats as edible any oil used directly or after processing for human consumption. It also noted the Central Government notification declaring maize oil as an edible oil for use in the manufacture of vegetable oil, and the buyers' specifications showing that the oil was intended for such use. The standards in the Prevention of Food Adulteration Rules, 1955, were held to serve a different object and were not decisive for tax classification.

Conclusion: Maize (corn) oil sold by the assessee was edible oil and was liable to be taxed at the concessional rate applicable to edible oil.

Ratio Decidendi: Where a taxing statute does not define a commodity, its character is determined in common parlance and an oil fit for direct use or use after processing for human consumption is edible oil.

---