- (1.) The only question that falls for consideration in this appeal filed against the judgment of the A. P. High court dated 21/4/1988 is whether rice bran oil is "vegetable oil" for the purpose of the Vegetable Oil Cess Act, 1983 (hereinafter referred to as "the Cess Act"). The expression "vegetable oil" is not defined in the Cess Act and we have to go to the definition of the said expression in Section 3 (h) of the National Oilseeds and Vegetable Oils Development Board Act (hereinafter referred to as "the Development Board Act"). In Section 3 (h) "vegetable oil" has been defined as under: "3.(H) 'vegetable oil' means any oil produced from oilseeds, or any other oil-bearing material of plant origin, and containing glycerides but does not include any such vegetable oil which has been subjected to any processing subsequent to the recovery of oil;"
(2.) In the impugned judgment, the A. P. High court has held that since rice bran is an oil-bearing material of plant origin, rice bran oil is vegetable oil. Shri Nageswara Rao, the learned counsel appearing for the appellants, has invited our attention to the decision of the Allahabad Highcourt in U. P. Solvent Extractors' Assn. v. Union of India and the decision of the Bombay High court (Nagpur bench) in Bhasir Oil Mills v. Union of India wherein a contrary view has been taken. It has not been shown that any appeal has been filed against the said decisions.
(3.) The Allahabad High court has pointed out that rice bran is the upper brownish part of the rice which is taken out in powder form when rice obtained from husking of paddy is processed in the rice mill and that it is a waste or by-product of rice. Rice bran oil is produced by the method of solvent extraction by mixing rice bran with liquid hexane, a highly inflammable petroleum product, so that the rice bran may dissolve in it and thereafter both are separated and rice bran oil is extracted from the rice bran so dissolved. The oil so extracted is used for manufacturing soap and is not fit for human consumption. The learned Judges have held that rice bran is neither an oilseed nor can it be regarded as vegetable as understood in the ordinary sense so as to be treated as an oil-bearing material of plant origin.;