Supreme Court: Crude Degummed Soybean Oil Not an Agricultural Product, is a Manufactured Good

The Supreme Court has held that crude degummed soybean oil is not an agricultural product, as it undergoes a manufacturing process that alters its essential character, distinguishing it from original raw soybeans.

This overrules the Gujarat High Court’s view, which had maintained that the oil retained its agricultural character since it came from soybeans.

Relying on precedents of P. Narayanan Nair and Delhi Cloth and General Mills Co. Ltd., the Court defined ‘agricultural product' as one that is unmanufactured and directly from cultivation.

The Court held that the oil is a manufactured item, allowing the appeal and granting import benefits to the appellant.