Exemption for edible oil products requires reliable proof of refined edible oil status; demand fails without test evidence.

Exemption under Notification No. 6/2002-CE depended on whether the product answered the description of refined edible oil, because goods other than refined edible oil were eligible for nil duty while refined edible oil attracted duty. The Department sought to deny exemption, but it produced no chemical test report or other reliable evidence establishing that the product met the standards of refined edible oil. In the absence of such proof, the demand was treated as resting on presumption and assumption, and the notice could not be sustained. The appellant was therefore entitled to the exemption, and the demand was held not maintainable.

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Issues: Whether the appellant was entitled to exemption under Notification No. 6/2002-CE dated 01.03.2002 for the disputed product and whether the show cause notice and demand could be sustained without any test report establishing that the product was refined edible oil.

Analysis: The exemption notification was construed in the light of the departmental clarification, which indicated that goods other than refined edible oil were eligible for nil rate of duty, while refined edible oil attracted duty. The record did not contain any chemical test report or other reliable material produced by the Revenue to show that the appellant's finished product satisfied the standards of refined edible oil. In the absence of such proof, the demand rested only on presumptions and assumptions, and the notice could not be sustained on that basis.

Conclusion: The appellant was held entitled to the exemption and the demand was held not maintainable.

Final Conclusion: The appeals succeeded, the impugned order was set aside, and consequential relief followed in accordance with law.

Ratio Decidendi: Where exemption eligibility turns on whether the product answers a specified tariff description, the Revenue must support denial of exemption with reliable evidence such as test results and cannot sustain a demand merely on presumption.

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