Refined oil retains commodity identity, so refined rapeseed and mustard oil qualified for concessional tax under the notification.

Refined rapeseed oil and refined mustard oil were treated as falling within the notification for rapeseed oil and mustard oil because refining removes impurities without altering the essential identity of the commodity. Applying the principle that a processed oil remains the same commercial commodity when its basic character is unchanged, the notification was read as covering refined forms as well. The result was that refined rapeseed oil and refined mustard oil qualified for the concessional rate of tax at one per cent.

---

---

Issues: Whether refined rapeseed oil and refined mustard oil fall within the expression "rapeseed oil and mustard oil" in the relevant notification so as to attract tax at one per cent.

Analysis: The notification granted concessional tax on sale of rapeseed oil and mustard oil without excluding refined forms of those oils. The controlling principle applied was that processing by refining removes impurities but does not necessarily change the identity or essential nature of the commodity. Reliance was placed on the line of authority holding that refined or hydrogenated oil remains the same commercial commodity where its basic character is unchanged. On that basis, refined rapeseed oil and refined mustard oil were treated as forms of rapeseed oil and mustard oil for the purpose of the notification.

Conclusion: Yes. Refined rapeseed oil and refined mustard oil are covered by the notification and are taxable at one per cent.

---