Plain wording of exemption notification covered oleoresins and essential oils from solvent extraction plant

Oleoresins and essential oils manufactured in a solvent extraction plant were held to fall within the plain wording of Notification No. 115/75 for the oil mill and solvent extraction industry. The exemption was applied according to its text, and the later amendment excluding only fixed vegetable oils and vegetable fats was treated as confirming that essential oils and oleoresins were not excluded. The narrower construction adopted below was rejected, and the goods remained eligible for the exemption benefit.

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Issues: Whether goods in the form of oleoresins and essential oils manufactured in a solvent extraction plant were entitled to exemption under Notification No. 115/75 covering the oil mill and solvent extraction industry.

Analysis: The notification, issued under Rule 8(1) of the Central Excise Rules, 1944, exempted goods manufactured in factories covered by the industries specified in the Schedule, including oil mill and solvent extraction industry. The expression was read according to its plain wording, and the goods were produced in a solvent extraction plant falling within that description. The later amendment excluding only fixed vegetable oils and vegetable fats and oils was treated as indicating that essential oils and oleoresins were not meant to be excluded. The narrower construction adopted by the Tribunal was rejected.

Conclusion: The goods manufactured by the appellants were covered by the exemption notification and were entitled to the benefit of the exemption.

Ratio Decidendi: An exemption notification must be applied according to its plain terms, and where a later amendment excludes only specified goods, other goods not so excluded remain within the exemption.

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