1999 (4) TMI 216

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....ri A.K. Chatterjee, SDR, for the Respondents. [Order per : Gowri Shankar, Member (T)]. -  The appellant manufactured special vegetable non essential oil and subjected it to processing with alkali, bleaching and hydrogenation, resulting in coming into existence of hardened technical oils. Such hardened technical oil was sold to manufacturers of soap, removal being under Chapter X procedu....

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....proposing to recovery the duty on the oil so used. The assessee took the stand that hydrogenation of oil does not amount to manufacture and that oil even after hydrogenation continued to remain oil. For this proposition it cited the judgment of the Supreme Court in Collector v. Jayant Oil Mills - 1989 (40) E.L.T. 287. The Collector, however, did not agree. He said that processed oil, which was fur....

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....ng a different commodity altogether. He further contends that as a result of the hydrogenation the oil in question does not conform to the definition given in the explanation to the notification of processed oil and the benefit of notification is not available. 4. In its judgment in Jayant Oil Mills the Supreme Court held that hardened rice bran oil having a melting point between 45oC and ....

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....e as oil in Item 12 notwithstanding such hydrogenation. Processed oil classified under Item 12 therefore continues, in these circumstances, to occupy in the same heading. To continue, in other words to be groundnut oil. 5. The Explanation to Notification 33/63 defines processing referred in that notification with reference to one or more processes specified therein. The question is whether....