Exemption for solvent-extracted oleoresins denied where notification was confined to the oil mill industry.

Exemption under Notification No. 115/75-C.E., as amended, was confined to the oil mill industry and the goods manufactured in factories covered by the industries specified in the Schedule. The expression "oil mill and solvent extraction industry" was construed in context, with solvent extraction treated only as a method used in oil milling rather than as a separate industry covering oleoresins. On that reading, the notification could not be stretched to include essential oils or oleoresins merely because they were produced by solvent extraction. Oleoresins manufactured in factories not constituting oil mills were therefore not entitled to the exemption.

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Issues: Whether oleoresins manufactured by solvent extraction in factories not constituting oil mills were covered by Serial No. 4 of Notification No. 115/75-C.E. dated 30-4-1975, as amended, so as to qualify for exemption.

Analysis: The exemption notification granted relief to goods manufactured in factories covered by industries specified in the Schedule. Serial No. 4 used the expression "Oil mill and solvent extraction industry", but the context of the notification showed that the exemption was directed to the oil mill industry. Solvent extraction was only one method used in oil milling and the words "solvent extraction" could not be read so broadly as to create a separate, independent industry covering oleoresins. The expression had to be construed in context and not by stretching the exemption beyond the oil mill sector. The ordinary meaning of the notification did not support an extension to essential oils or oleoresins merely because they were produced by solvent extraction.

Conclusion: Oleoresins manufactured by the respondents were not entitled to exemption under Notification No. 115/75-C.E. as amended.

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