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of <h1>Refining by-products from imported oil at solvent extraction factory exempt from Central Excise duty</h1> The Tribunal dismissed the Revenue's appeal, affirming that the by-products emerging from refining imported oil in a factory engaged in solvent extraction ... Demand of duty - clearance of by-products without payment of Central Excise duty by claiming the exemption under Notification No. 115/75-CE dated 30.4.1975 - Revenue argued that the above exemption is applicable only if the full cycle of manufacture of edible oil including crushing, solvent extraction and refining is done in the factory. There is also a contention that the exemption is not applicable to the by-products because such products come from refining and not from oil milling and solvent extraction - Held that:- when refining of imported oil is done in a composite factory having facilities for crushing of seeds and solvent extraction, the products emerging are eligible for exemption under Notification No. 115/75-CE, appeal filed by the Revenue is dismissed Issues: Interpretation of Notification No. 115/75-CE for exemption of Central Excise duty on by-products emerging from refining of imported oil in a factory engaged in solvent extraction of edible oil.Analysis:1. The respondents, engaged in solvent extraction of edible oil, were clearing by-products like acid oil, soap stock, gum, etc., without paying Central Excise duty under Notification No. 115/75-CE. The Revenue contended that the exemption is not applicable when imported oil is refined, as there is no oil extraction involved in such refining.2. The main argument was whether the exemption under the said Notification is applicable only if the full cycle of manufacturing edible oil, including crushing, solvent extraction, and refining, is completed in the factory. The Revenue asserted that the exemption does not cover by-products from refining, as they do not originate from oil milling or solvent extraction.3. The respondents argued that the Notification does not specify the products eligible for exemption and contended that it applies to all goods manufactured in factories under the Oil Mill and Solvent Extraction Industry. They relied on various tribunal decisions supporting their interpretation of the Notification.4. The Tribunal considered both sides' arguments and referred to previous decisions to settle the matter. It was established that when refining imported oil in a factory with facilities for seed crushing and solvent extraction, the resulting products are eligible for exemption under Notification No. 115/75-CE. Specific reference was made to the decision in the case of A.P. Solvex Ltd., supporting the respondents' position.5. In conclusion, the Tribunal dismissed the Revenue's appeal based on the settled interpretation of the Notification and previous tribunal decisions supporting the eligibility of the by-products for exemption under Notification No. 115/75-CE.
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