Exemption for soap stock and acid oil in oil extraction and refining was supported by prior Tribunal rulings and trade notice consistency.

Acid oil and soap stock generated as by-products in oil milling, solvent extraction and subsequent refining were treated as falling within the scope of Notification No. 115/75-C.E. The Tribunal's approach relied on its earlier decisions and the HSN explanatory note treating soap stock as part of the oil refining process within the broader oil extraction industry. It also noted that the relevant departmental trade notice was consistent with that interpretation and binding on the department, supporting exemption eligibility for such by-products.

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Issues: Whether acid oil or soap stock obtained as a by-product in the course of oil extraction and refining was entitled to exemption under Notification No. 115/75-C.E. and whether the departmental trade notice supported that interpretation.

Analysis: The Tribunal applied its earlier decisions holding that the exemption notification covered soap stock and acid oil arising from oil produced by milling or solvent extraction, even where downstream refining was carried out in the same manufacturing setup. It relied on the explanatory note to the HSN, which treated soap stock as a by-product of oil refining within the broader oil extraction process. The Tribunal also noted that the earlier decision had attained finality and that the relevant trade notice issued by the Collectorate was consistent with the same view and binding on the department.

Conclusion: Acid oil or soap stock was held to be eligible for exemption under Notification No. 115/75-C.E., and the appeals were allowed in favour of the assessee.

Ratio Decidendi: A by-product such as acid oil or soap stock, obtained from oil milling or solvent extraction and subsequent refining, falls within the scope of the exemption granted to the oil mill or solvent extraction industry.

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