JUDGMENT Rajes Kumar, J.
1. These five revision under Section 11 of the U. P. Trade Tax Act (hereinafter referred to as the "Act" ) are directed against the orders of the Tribunal dated 26.10.1995, 11.12.1995 and 29.02.1995 relating to the assessment years, 1998-79, 1979-80, 1984-85 both under U.P. Trade Tax and Central Sales Tax Act.
2. The only question involved is whether acid oil obtained , in the process of manufacturing of vanaspati ghee is liable to tax as "All kinds of oil or as an unclassified item. Dealer/opposite party (hereinafter referred to as "Dealer" ) claimed it; taxable as: "All kinds of oil at the rate of 4 percent while the assessing authority levied the tax as an unclassified item. Tribunal accepted the claim of the dealer and held acid oil taxable at the rate of 4 percent under the entry of All kinds of oil Acid oil is obitained in the process of manufacturing of vanaspati ghee while retining the vegetable oil as a residue which is used mainly in the manufacturing of lower grade of soap as a raw material.
3. Heard learned counsel, for the parties
4. Issue involved in squarely covered by the decision of this Court in the, case of Commissioner of Sales Tax v. Prag ice and Oil Mills Reported in 35 STC, 520 which has been affirmed by the Apex Court in the case of Commissioner of Sales Tax v. Prag Ice and Oil Mills reported in 80 STC, 403. The Division Bench relying upon the decision of the Apex Court in the Case of Tungabhadra Industries Ltd. v. Commercial Tax Officer reported in 11 STC, 827 held as follows.
It appears that the residual oil becomes unfit for humand consumption due to oxidative charge because of which the rancidity increases to a considerable extent The fact that nothing is done to arrest this process will not change the character of the commodity. If it was groundnut oil to start with it none the less remained groundnut oil even though because of the increased rancidity it may become unfit for human consumption.
Ground nut oil is generally used both for haman consumption as well as for manufacture of soaps. If because of the oxidation process it ceases to be available to one of its general use but is none the less still usable for manufacture of soaps, the mere circumstance that it has become non-edible will not change its mature or character as a commercial commodity. It does not, in our opinion, become an oil other than groundnut oil. In our opinion, the Judge (Revisions), Sales Tax, was right in holding that the turnover of the sales of residual oil was liable to be taxed as groundnut oil at one per cent."
Appeal filed against the aforesaid decision has been dismissed by the Apex Court in the case of Commissioner of Sales Tax v. Prag Ice and Oil Mills reported in 80 STC, 403. Apex Court held as follows:
"The respondent-assessee manufactures Vegetable ghee from ground nut oil. The groundnut oil is mixed with acids and. chemicals in order to purify and refine it. The residue left, alter the removal of the refined portion, is sold to the soap manufacturers. According to the assessee the turnover of the sale of residue was taxable at one percent on the, basis that the residue was still groundnut oil. The Sales Tax Officer rejected this contention and he held that the residue was oil of a different character being not edible and was taxable at six percent. The view taken by the Sales Tax Officer was upheld in the appeal. The assessee went in revision and the revisional authority set aside the orders of the Sales Tax Officer and the appellate authority and came to the conclusion that the residue, in its nature and character, was groundnut oil, with greater impurities than time original oil. It was held that the residue was taxable as groundnut oil at one percent. At the instance of the Commissioner, Sales Tax, the following question was referred for the opinion of the High Court.
"Whether, on the facts and in the circumstances of the case the Additional Judge (Revisions) was legally justified in holding the residual oil as groundaut oil simpliciter, even when it had undergone change in its properties by the admixture of chemicals and acids?"
The High Court following the Judgment of this court in Tungabhadra Industries Ltd. v. Commercial tax Officer (1960) 11 STC 827, came to the conclusion that the residue left, after going through the process of acids and chemicals, continues and remains to be the groundnut Oil and is taxable at one percent we agree with the reasoning and the conclusions reached by the High Court. There is no merit in this appeal and the same is dismissed with no order as to costs."
5. Following the decision of the Allahabad High Court in the case of Commissioner of Sales Tax v. Prag Ice and Oil Mills (supra), Ahdhra Pradesh High Court in the case of State of A.P. v. Coromandel Agro Products and Oils Limited reported in 79 STC, 320 held that cotton seed sludge oil and cotton seed acid oil as vegetable oil. In the case of Kothari Plantations and industries Ltd v. Registrar, Tamil Nadu Taxation Special Tribunal reported in 2002 UPTC, 1189, Division Bench of Madras High Court has held that impure oil or acid oil vegetable oil.
6. For the reasons stated above, revision has no merit.
7. In the result, all the five revisions fail and are accordingly, dismissed.