The refining process plays a crucial role in determining the classification of edible oil, and the legal framework should consider the impact of refining on the nature of the oil.

V. K. SINGHAL, J.

( 1 ) BOTH these writ petitions are disposed of by a common order since the controversy involved is one and the same.

( 2 ) ASSESSMENT orders have been challenged on the ground that the solvent extracted oil sold to vanaspathi manufacturing units or to refining units has been wrongly treated as non-edible oil. A circular was also issued by the Commissioner, in which, the oil manufactured from oil cake was treated as edible oil (non-refined ). It is submitted that, the manufacturer is covered by the essential Commodities Act, 1955 and the Pulses, Edible Oil Seeds and Edible Oils (Storage control) Order, 1977, as amended from time to time governs the storage of solvent extracted oil. "edible oils" is defined under Clause 2 (g) in which, it is stated that, any oil used directly or after processing for human consumption and includes hydrogenated vegetable oil, is an edible oil. Under the Prevention of Food Adulteration Rules, 1955, the 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 vary in the contents of soluble impurities, colour and flavour. (2) The unrefined solvent extracted groundnut oil cannot be termed as 'non-edible' as pointed out in your letter. On the other hand, it is perfectly edible oil, only after refining, and therefore, it should be known as potential edible oil. "

( 3 ) ON behalf of the respondents, it is stated that the edible oil which is produced by the petitioner is from oil cake from the process of solvent extraction, and is vegetable non-edible oil, and is not fit for human consumption. From April 1, 1993, there is a separate entry enumerated in Part E of the Second Schedule as edible oils other than the edible oils falling under serial No. 28 of the Fifth Schedule which included non-refined and refined oils and hydrogenated oils. The contention of the petitioner that the goods fall under entry 1 of Part E of the Second Schedule as edible oil other than edible oils falling under serial No. 28 of the Fifth Schedule as non-refined oil was not accepted as correct interpretation. Since oil meant for direct human consumption could be considered as edible oil and not the oil which is sold to vanaspathi manufacturing units or to refining units.

( 4 ) RELIANCE is placed on the judgment given in State of Uttar Pradesh v. Korea (India) Ltd. AIR1977 SC 132 , (1976 )4 SCC477 , [1977 ]1 SCR837 , [1977 ]39 stc8 (SC ), 1976 (8 )UJ876 (SC ) and in Chandausi Oil Mills, Chandausi, Moradabad v. Sales tax Commissioner, U. P. [1961] 12 STC 310 (All. ). The Allahabad High Court occasioned to consider the meaning of edible oil. It was held that solvent extracted oil cannot be considered as edible oil (non-refined under the Second Schedule to the KST Act ). Circulars of the commissioner dated July 20, 1991 and July 31, 1991 was also relied. In Milkhi Ram Oil and Ball Mills v. State

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