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Supreme Court gave a big decision on coconut oil: The Supreme Court has taken an important decision to stop the continuous increase in the price of coconut oil. While giving this big decision, the three judge bench of CJI Sanjeev Khanna, Justice Sanjay Kumar and Justice R Mahadevan said, ‘Coconut oil in small packets can be kept in the category of edible oil. It is clear from this decision that as hair oil, it attracts 18 percent tax, but if it is sold as edible oil, only 5 percent tax will be charged, which will save 13 percent tax. Obviously, while the companies have benefited from this decision, the people using it as hair oil will also benefit.
This case took 15 years
It took 15 years for the Supreme Court to give its decision on this matter. In 2009, CESTAT ruled in favor of the industry. After reducing the tax, it was kept in the category of edible oil. In 2018, a two-judge bench of the Supreme Court had given a divided verdict on this issue. The matter came before a three-judge bench of the Supreme Court headed by CJI Sanjeev Khanna. The court had reserved the decision on October 17.
Other oils may also be affected
This decision of the Supreme Court may also affect the prices of other small bottles of oil. Because olive oil, sesame oil and peanut oil are also used in cooking and hair.
Supreme Court rejected the application of Central Excise Commissioner
Also, the issue before the Supreme Court was whether coconut hair oil in small packages i.e. weighing less than 2 kg should be considered as ‘edible oil’ under heading 1513 or as ‘hair oil’ under heading 3305? The Supreme Court on Wednesday rejected the plea of the Central Excise Commissioner seeking to classify coconut oil in small packages as hair oil and impose 18 per cent tax on it.
