1974 (8) TMI 102

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....e heard together and covered by this judgment. The only point for consideration is whether mustard oil comes within the ambit of Item 13 in first schedule to the Central Excises and Salt Act, 1944. This Item was introduced by the Finance Act of 1956 and is to the following effect : "Vegetable Non-essential Oil-all sorts, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power." 2. The petitioners had been manufacturers of mustard oil by aid of power at the material time and with the introduction of the above item, they had to take out a licence for manufacture of mustard oil which according to the authorities became subject to excise duty at the rate of Rs. 75 per ton, thereafter i....

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....sp;   4. The petitions filed an affidavit-in-reply reiterating their allegation and cententions made in the petition. 5. The petitioners made the points before Banerjee J. (i) Mustard oil was not non-essential oil but a highly essential cooking medium in many parts of India, so that it was not vegetable non-essential oil. (ii) Vegetable non-essential oil was vague and indefinite and incapable of being applied to mustard oil without more. (iii) Taxing statute must be guided by its language and if such language was doubtful, interpretation must be made in favour of assessee. 6. The learned Judge found that essential oil is a well known expression in chemical technology. It meant ethereal, volatile or....

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....sential oil has no significance or meaning. It was further contended that interpretation by the people in general is what is to be taken into account and also what appears from a reference to authorities. There was thus vagueness in the description as non-essential oil which can never be used as description of physical and chemical properties. Further the user of mustard oil should have been taken into account which was an essential commodity. He further submitted that issuance of the press note would indicate that there was vagueness in the description. For these reasons it was submitted that the learned Judge was in error in holding that mustard oil was within the ambit Item 23 and later on item 12 of the First Schedule to the said Act. ....