Order Date – 21st March 2022

Key Pointers - 

• The Applicant, Coastal Fats Oils Private Limited, is manufacturer of 'spent earth oil' which is a mixture of clay minerals and vegetable oil which is a waste emerged out of edible oil industry.
• The ruling sought by the Applicant is that what is the Rate of Tax applicable on solvent Extracted spent Earth oil?
• On examining the Sl.no 90 in which the processes adopted are boiled, oxidised, dehydrated, sulphurised, blown, polymerised by heat in vacuum or in inert gas or otherwise chemically modified. In the instant case, Spent Earth Oil is obtained/ extracted by or blown by heat at certain temperatures, in the presence of food grade solvent Hexane, which is an inert gas. Hence, the processes indicated above apply to the present case on hand.
• The authorities, therefore, held that the solvent Extracted spent Earth oil is taxable heading 1518, which finds place at SI. No 90 of Schedule I at 5% rate and SI.No. 27 of Schedule II at 12% of notification No. 01/2017 Central Tax (Rate) Dt.28.06.2017.