Supreme Court of India · 1960-10-18
M/S. TUNGABHADRA INDUSTRIES LTD. vs THE COMMERCIAL TAX OFFICER, KURNOOL.
- Citation / case number
- SC 1958/27
- Court
- Supreme Court of India
- Petitioner
- M/S. TUNGABHADRA INDUSTRIES LTD.
- Respondent
- THE COMMERCIAL TAX OFFICER, KURNOOL.
- Author
- DAS, S.K.,HIDAYATULLAH, M.,GUPTA, K.C. DAS,SHAHC.,AYYANGAR, N. RAJAGOPALA
- Bench
- DAS, S.K.,HIDAYATULLAH, M.,GUPTA, K.C. DAS,SHAH, J.C.,AYYANGAR, N. RAJAGOPALA
Judgment text excerpt
The Supreme Court ruled that hydrogenated groundnut oil, or Vanaspati, qualifies as 'groundnut oil' under Rule 18(2) of the Madras General Sales Tax (Turnover and Assessment) Rules, 1939. The Court held that the processing of groundnut oil into hydrogenated oil does not change its essential nature as it remains derived from groundnuts and retains its character as oil. Consequently, the appellant is entitled to deduct the purchase price of groundnuts from the sale proceeds of hydrogenated oil for tax assessment purposes.