TMI Blog1999 (8) TMI 944X X X X Extracts X X X X X X X X Extracts X X X X ..... e edible oil will include the non-refined sunflower oil extracted from oil cake. Non-refined edible oil has been used only to make a distinction that it could be consumed after refining. The opinion of the Director, Oil Technological Research Institute, Anantapur, has also been produced in the petition, which is to the following effect: "(1) In India, the groundnut oil cake is solvent extracted to recover all the available oil present in the oil cake. Groundnut (seeds) are not subjected to solvent extraction directly, though, it is technically feasible. In advanced countries like U.K., U.S.A., and West Germany and Canada, high oil content seeds like groundnut, sunflower, soyabean, rapeseed, and mustard, cotton seed, etc., are directly solvent extracted from recovery of oils. To make matters clear, I would like to state that the groundnut oil cake is nothing but cooked, crushed and partially de-oiled groundnut seed. Therefore, the oil obtained either from the groundnut seed or groundnut oil cake remains nothing but groundnut oil and both are very much groundnut oils. Basically, the chemical and physical characteristics of both the oils are one and the same, except, they may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erned with Sl. No. 28 of the Fifth Schedule in respect of the product of village industry. Solvent Extracted Oil, De-oiled Meal and Edible Flour (Control) Order, 1967 regulates production of solvent extracted oil. The solvent extracted oil cannot be sold for the purpose of direct human consumption and could be sold after refining. The refining has to be in accordance with the standard of quality prescribed. The sale or movement of stock of solvent extracted oil, cannot be to any other person and the user has to use the oil for the intended purpose. There is another Vegetable Oil Products (Control) Order, 1947, under which, vegetable oil product has been defined that any vegetable oil subjected to a process of hydrogenation in any form, or an admixture thereof with any other substance for edible purpose. In the Vegetable Oil Products (Standards of Quality) Order, 1975, names of various vegetable oils have been given, from which hydrogenated oils can be produced, which includes solvent extracted oil as well. From the opinion of the Director, Oil Technological Research Institute, Anantapur, it is opined that the solvent extracted oil cannot be treated as non-edible oil, though, it b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hinery that revolves at 15,000 rpm facilitating the separation of oil and soap slurry by centrifugal force. Free fatty acids are converted into soap stock which is a by-product. Soap stock is separately collected and is sold as raw material in the manufacture of acid oil. Crude oil so converted passed through a series of plate heat exchangers and the temperature is cooled to 20 c and fed to the crystallizer where the temperature is further reduced to 5 c by the technology known as winterization. In the process of reduction in temperature, wax is sliced. Neutral oil is allowed to settle in order to allow the precipitated wax to mature which then forms into mature crystals. Wax which has come out is used as a raw material in cosmetics, pharmaceuticals and polish industries. The temperature of dewaxed oil is then reduced to 80-90 c by using high pressure steam and a proportionate quantity of boiling water is infused into the oil. Oil emulsion and water is passed through water washing centrifuge separators. In bleaching, neutral oil is increased to 100oc by the use of high pressure steam moisture is eliminated. Activated bleaching earth and activated carbon are added. The product is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e held continued to be agricultural produce. In Deputy Commissioner of Sales Tax (Law), Board of Revenue (Taxes), Ernakulam v. Pio Food Packers [1980] 46 STC 63 (SC); AIR 1980 SC 1227, processing of pineapple fruit into pineapple slices for the purpose of being sold in sealed cans, the commodity continues to possess its original identity, notwithstanding the removal of inedible portions from the pineapples slicing and packaging it, was held that it does not become a different commodity. 7.. In the case of solvent extracted oil also, impurities are removed, but the basic character of oil remains. Edible oil is a genus which has both the species, viz., refined and non-refined beside the hydrogenated oil. The Legislature has not contemplated any difference while specifying the edible oil in Part E in the Second Schedule between refined and non-refined and same rate of tax continues from April 1, 1988 for both the species. Thus, it can be considered that in popular sense the edible oil would include refined oil as well as non-refined oil. The Control Order 1977 also covers within the sweep of edible oil all those oils which are used directly for human consumption or which could be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpurity of hexane. It is for this reason that there is a prohibition for direct sale of such oil. Refining has been considered as not changing the basic character of the oil and as such, the solvent extracted oil cannot be considered as not falling within the proper category of edible oil. Notification dated March 30, 1992 published on March 31, 1992 reduced the rate of tax on edible oils (non-refined) at 3 per cent. The entry of which is at Sl. No. 1, Part E of the Second Schedule. The word nonrefined edible oil applies to all types of non-refined oils and the word edible oil could be considered in respect of those edible oils which becomes edible oil after refining. There may be certain edible oils which are non-refined and still they are edible, that however will not be excluded. In B.P. Oil Mills Ltd. v. Sales Tax Tribunal [1998] 111 STC 188 (SC) definition of "manufacture" in the U.P. Sales Tax Act, 1948 was considered which envisages processing as well. It was observed that: ".......firstly, because it considered the definition of "manufacture" (which, of course, is identical with its definition under the Act) in the context of 'resale' of goods as defined in that A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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