How to remove default tag and category options form a custom post type admin menu

Remove these lines:

/* this adds your post categories to your custom post type */
register_taxonomy_for_object_type( 'category', 'custom_type' );
/* this adds your post tags to your custom post type */
register_taxonomy_for_object_type( 'post_tag', 'custom_type' );

They’re adding tags and categories to your post type, so of course they’re appearing.