Edible oil classification turns on essential character, not mere processing, for crude degummed soyabean oil.

Crude degummed soyabean oil was held to fall within the edible oil entry because processing did not change its essential character. The Court applied the principle that oil remains oil so long as it retains its essential properties, and accepted that any oil capable of human consumption can qualify as edible oil. On that basis, the product was classified under entry 185(ii) of Schedule II Part A of the Gujarat Sales Tax Act, 1969, and not under entry 185(i), with the result in favour of the assessee.

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Issues: Whether "Crude Degummed Soyabean Oil" is classifiable under entry 185(i) of Schedule II Part A of the Gujarat Sales Tax Act, 1969 or under entry 185(ii) as edible oil.

Analysis: The product was imported as crude degummed soyabean oil and required processing before use, but the decisive question was whether processing altered its essential character. The Court applied the principle that oil does not cease to be oil merely because it has undergone processing, so long as it retains its essential properties. It also accepted the view that any oil capable of human consumption falls within the concept of edible oil. On that basis, the product was treated as essentially oil and not excluded from the edible oil entry merely because it was crude or required further processing.

Conclusion: "Crude Degummed Soyabean Oil" is covered by entry 185(ii) of Schedule II Part A as edible oil, and not by entry 185(i). The answer was therefore in favour of the assessee and against the department.

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