Judgment

M.K. Mukherjee, J.-The appellant carries on business in manufacture and sale of oils at Agra in the State of Uttar Pradesh (U.P.). As a part of their business they purchase crude oil of different varieties, such as linseed oil, castor-oil, mustard-oil and, after refining, sell as refined oil. The refinement is brought about by first treating the oil with alkali to remove the acid contents, then bleaching it with absorbent cotton or activated carbon and lastly deodorising it with steam.

2. To ascertain whether they were liable to pay tax on the sale of refined oil as they had already paid tax for purchase of the crude oil and, if so, what would be the rate thereof, the appellant approached the Com­missioner of Sales Tax, U.P. invoking the provisions of Section 35 of the U.P. Trade Tax Act, 1948 (‘Act’ for short). By his order dated June 19, 1985, the Commissioner held that the appellant was liable to pay sales tax notwithstanding the fact that they had paid tax on the purchase of the crude oil and that the rate of tax would be 4%. Assailing the order of the Commissioner the appellant preferred an appeal before the Sales Tax Tribunal which was dismissed. They then approached t