2005 (12) TMI 368

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.... also being disposed off by a common order. 2. The facts relating to the case may be stated as follows :- The appellants are engaged in the manufacture of chemicals along with oxidized vegetable oil falling under Chapter Heading 1508.90 attracting Nil rate of duty. The item, oxidized vegetable oil, is not an oil, which is extracted from either oil seeds or such materials bearing plant origin, which may attract cess. The said oxidized vegetable oil is prepared from Soyabean oil by adding hydrogen peroxide, formic acid, phosphoric acid as well as caustic soda lye. All the above ingredients are poured in one vessel and mixed, Which prepares the product oxidized vegetable oil. 3. The Central Excise Department started issuing ....

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.... Development Board. They do not dispute about the leviability of cess on vegetable oil, which is produced from oil seeds or any other oil bearing material of plant origin. What they contend is that the oil, which is prepared by them, does not fall within the meaning of oil produced from oil seeds or oil bearing material of plant origin and therefore, no cess is leviable. It  is  further contended that the Commissioner (Appeals) has erred in interpreting the word 'processing'. 7. The Commissioner (Appeals) has relied upon the interpretation given by the Tribunal in the case of M/s. Coromandal Agro Products v. Collector of Central Excise reported in 1992 (58) E.L.T. 158 (Tribunal) wherein it was held that the National Oil Se....

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....at the origin of the oil cakes in the popular sense is thus the oil seeds. There must be direct and not remote nexus between the oil bearing material and the plant so that it can be said in such cases, for instance as in the case of oil derived from the limbs, flowers, barks, etc. that their origin is the plant. No cess can, therefore, be derived under Section of the Cess Act as it is not covered by the definition of the expression 'vegetable oil' in Section 3(h) of the Board Act. (b)     M/s. Coromandal Agro Products v. Collector of Central Excise - 1992 (58) E.L.T. 158 (Tribunal)           In the above case, it is observed that the expression "Vegetable Oil" has been d....