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6. In our opinion, these observations will equally apply to the residue which is left after the refining part of the process is completed. The residue is a product of groundnut and is oil as explained in these observations.

7. The Supreme Court further observed that "groundnut oil when it issues out of the expresser normally contains a large proportion of unsaturated fatty acids-oleic and linoleic-which with other fatty acids which are saturated are in combination with glycerine to form the glyceride which is oil. The unsaturated fatty acids are unstable, i. e., they are subject to oxidative changes. When raw oil is exposed to air particularly if humid and warm, i. e., in a climate such as obtains in Madras, oxygen from the atmosphere is gradually absorbed by the unsaturated acid to form an unstable peroxide (in other words, the change involves the addition of two atoms of oxygen) which in its turn decomposes breaking up into aldehydes. It is this oxidative change and particularly the conversion into aldehydes that is believed to be responsible for the sharp unpleasant odour, and the characteristic taste of rancid oil. If nothing were done to retard the process the rancidity may increase to such an extent as to render it unfit for human consumption. The change here is both additive and inter-molecular, but yet it could hardly be said that rancid groundnut oil is not groundnut oil. It would undoubtedly be very bad groundnut oil but still it would be groundnut oil and if so it does not seem to accord with logic that when the quality of the oil is improved in that its resistance to the natural processes of deterioration through oxidation is increased, it should be held not to be oil.

8. It appears that the residual oil becomes unfit for human consumption due to oxidative change because of which the rancidity increases to a considerable extent. The fact that nothing is done to arrest this process will not change the character of the commodity. If it was groundnut oil to start with it none the less remained groundnut oil even though because of the increased rancidity it may become unfit for human consumption.

10. Groundnut oil is generally used both for human consumption as well as for manufacture of soaps. If because of the oxidation process it ceases to be available to one of its general use but is none the less still usable for manufacture of soaps, the mere circumstance that it has become non-edible will not change its nature or character as a commercial commodity. It does not, in our opinion, become an oil other than groundnut oil. In our opinion, the Judge (Revisions), Sales Tax, was right in holding that the turnover of the sales of residual oil was liable to be taxed as groundnut oil at one per cent. The question referred to us is, therefore, answered in the affirmative in favour of the assessee and against the department. The assessee is entitled to its costs which we assess at Rs. 100.