TaxTMI 
TaxTMI 
2002 (8) TMI 826
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..... The respondent-company is engaged in manufacturing solvent extracted oil having its plant and industry 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 un....
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.... by way of sending a telegram. The assessing authority passed an ex parte reassessment order on June 18, 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 t....
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....gs. Thus, according to the respondent-company, the competent authority has rightly passed the ex parte reassessment 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 ....
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....d by the respondent-company is required to be refined which includes the process of deodourisation, decolourisation 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 me....
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....ld by the respondent-company admittedly bears the label "not for direct human consumption". Therefore, on their own saying, the 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 bein....