Exemption for Hexane in solvent-extracted oil refining depends on proof of actual qualifying use and factual verification.

Hexane under Notification 75/84 was treated as potentially eligible for exemption when used in miscella refining of in-house solvent-extracted oil, because the phrase covering use in the manufacture of solvent-extracted fixed vegetable oil was read broadly to include incidental and ancillary processing needed to make the oil marketable. However, eligibility depended on proof of actual use, and the record did not clearly show that Hexane was used only for in-house solvent-extracted oil rather than for refining existing oils. The matter was therefore remanded for de novo verification and limited allowance of the benefit only on established qualifying use.

---

---

Issues: Whether Hexane was eligible for exemption under Sr. No. 8 of Table to Notification 75/84 when used in miscella refining of in-house solvent-extracted oil, and whether the matter required remand for verification of actual use.

Analysis: The condition in the notification was read as not restricting the use of Hexane only to the initial solvent extraction stage. The expression referring to use in the manufacture of solvent-extracted fixed vegetable oil was held broad enough to cover operations incidental and ancillary to making the extracted oil marketable, particularly where the process was carried out in the same . At the same time, the record did not clearly establish that the Hexane was used exclusively for in-house solvent-extracted oil and not for refining already existing oils, so factual verification was necessary.

Conclusion: The exemption question was not finally decided on merits and the matter was remanded to the original authority for de novo adjudication with directions to quantify and allow the benefit only for Hexane used in miscella refining of in-house solvent-extracted oils.

Ratio Decidendi: Where a notification grants exemption for goods intended for use in the manufacture of solvent-extracted fixed vegetable oil, the benefit may extend to incidental and ancillary processing of in-house extracted oil, but eligibility depends on factual proof of the actual use of the goods.

---