2014 (2) TMI 876

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....ertake oil milling and solvent extraction in their factory prior to refining. During the course of manufacture of Vanaspati and refined edible oil, three bye-products viz., fatty acids, soap and acid oil emerge. The assessee herein consumes soap stock and acid oil to manufacture soap which they clear without payment of duty by availing benefit of Notification No. 115/75 dtd 30.4.1975 as amended and also clear fatty acids from their factory without payment of duty availing benefits of the same exemption notification. The lower authority issued show cause notice alleging that soap is not a bye-product that arises during the course of manufacture of refined edible oil/vanaspti but a finished product in its own, hence the assessee is not eligib....

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....rescribed in the notification, it is the submission that the products arising from the working of plant/mill could only qualify for exemption. It is the submission that the assessee have cleared soap as the bye-product, it cannot be said that soap can be considered as bye product of oil mill and solvent extraction industry. It is the submission that the adjudicating authority has erred in dropping the proceeding initiated by the show cause notices and the assessee should be denied the benefit of exemption notification No.115/75 CE. 5. Learned advocate appearing on behalf of the respondent assessee would draw our attention to Notification No.115/75 CE and submit that there is no requirement as has been canvassed by the departmental repres....

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....ding No.15.04) falling under the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), and manufactured in factories covered by any of the industries specified in the Schedule hereto annexed, from the whole of the duty of excise leviable thereon. THE SCHEDULE 1. Coir Industry 2. Cashew Industry 3. Tanning Industry 4. Oil Mill and Solvent Extraction Industry 5. Rice Milling Industry" 9. It can be seen from the above reproduced notification, all the products manufactured by the assessee in one of the industries specified in the schedule of the notification are eligible for exemption. As already recorded herein above, there is no dispute that the respondent falls under the category of "oil mill and so....