They then approached the Allahabad High Court by filing a petition under Article 226 of the Constitution of India which was also dismissed.
Assailing the order of the Commissioner the appellant preferred an appeal before the Sales Tax Tribunal which was dismissed.
By his order dated June 19, 1985, the Commissioner held that the appellant was liable to pay sales tax numberwithstanding the fact that they had paid tax on the purchase of the crude oil and that the rate of tax would be 4.
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 .
J U D G E M E N T K. MUKHERJEE, J. The appellant carries on business in manufacture and sale of oils at Agra in the State of Uttar Pradesh 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.
Hence this appeal by special leave.
The refinement is brought about by first treating the oil with alkali to remove the acid companytents, then bleaching it with absorbent companyton or activated carbon and lastly deodorising it with steam.
