Soapstock exemption under oil mill and solvent extraction notification applied to an integrated refining unit.

Notification No. 115/75 exempted goods manufactured in factories covered by the oil mill and solvent extraction industry. Soapstock arising as a by-product during refining of solvent-extracted oil in an integrated unit was treated as within that exemption, because the factory was licensed as a single manufacturing unit carrying on solvent extraction, refining and further processing. The presence of downstream operations did not justify splitting the integrated factory into separate industrial segments to deny the benefit. The exemption was therefore applicable to soapstock, and the duty demand was unsustainable.

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Issues: Whether soapstock obtained as a by-product in the course of refining oil extracted by solvent extraction in a factory covered by the oil mill and solvent extraction industry was entitled to the exemption under Notification No. 115/75.

Analysis: The notification exempted goods manufactured in factories covered by the oil mill and solvent extraction industry, and the record showed that the appellant's unit was licensed as a single factory carrying on solvent extraction, refining, and further processing. The soapstock arose from treatment of solvent-extracted oil during refining, and the departmental trade notices supported inclusion of soapstock within the exemption. The fact that the factory also undertook downstream processes did not justify splitting the same integrated unit into separate industrial segments for denial of the benefit.

Conclusion: Soapstock was held to fall within the scope of the exemption and the denial of benefit was unsustainable.

Final Conclusion: The exemption was held applicable to soapstock produced in the appellant's integrated solvent extraction and refining unit, and the duty demand could not be sustained.

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