Exemption under industrial notification denied where a refinery did not crush oil seeds or conduct solvent extraction in-house.

Acid oil generated during manufacture of vegetable product from purchased vegetable oil was held not to qualify for exemption under Notification No. 115/75-C.E. The exemption applied to goods falling under Item 68 manufactured in factories covered by specified industries, including oil mill and solvent extraction industry, but an oil mill was treated as a unit that expresses oil from seeds. The unit in question only refined raw oil obtained from others and did not crush oil seeds or carry out solvent extraction in its factory. The precedent relied on was distinguished because it concerned a composite unit undertaking oil-seed crushing.

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Issues: Whether acid oil generated during the manufacture of vegetable product from purchased vegetable oil was eligible for exemption under Notification No. 115/75-C.E. dated 30-4-1975.

Analysis: The exemption covered goods falling under Item 68 manufactured in factories covered by industries specified in the Schedule to the notification, including oil mill and solvent extraction industry. An oil mill was understood as a unit engaged in expressing oil from seeds. The appellants were found to be only refining raw oil obtained from others for conversion into vegetable product, and were not carrying out crushing of oil seeds or solvent extraction in their factory. The relied-upon precedent was distinguished because that case involved a composite unit undertaking crushing of oil seeds.

Conclusion: The disputed acid oil was not eligible for exemption under Notification No. 115/75-C.E. and the appeal failed.

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