COMMERCIAL TAXES OFFICER Vs. MOONGALAL DURGALAL

JUDGEMENT

(1.) THIS was initially a reference which is now heard as a revision under section 15 of the Rajasthan Sales Tax Act, 1954, as substituted by the Amendment Act of 1984. The question of law referred by the Tribunal for decision of this Court was the following, namely : " Whether, on the facts and in the circumstances of this case, the Board of Revenue was justified in holding that 'edible oil' is a raw material within the meaning of section 2 (mm) of the Rajasthan Sales Tax Act ?"

(2.) DURING the relevant accounting period, the dealer purchased and utilized edible oil worth Rs. 28,183. 05, in the prescribed manner, for the purpose of manufacturing pulses treating the edible oil as a raw material in the process of manufacture of pulses. The assessing authority rejected the dealer's contention that the edible oil was a raw material liable to be taxed at the concessional rate prescribed in the Act. Ultimately, the Tribunal took the view that the dealer's contention was correct, and therefore, it held that the edible oil having been used in the process of manufacture of pulses of facilitate removal of husk from the grain, falls within the definition of "raw material" in section 2 (mm) of the Act, which reads as under : " 2. (mm) 'raw material' means an article used as an ingredient in any manufactured goods and includes fuel and lubricant required for the process of manufacture, but does not include bullion and specie. "