2005 (9) TMI 93

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y Order dated 31st October, 1991. 3. The Collector (Appeals) allowed the Appeal of the Respondents by Order dated 20th April, 1992. CEGAT has dismissed the Appeal of the Appellants by the impugned Judgment. 4. It is settled law that to avail the benefit of an exemption Notification a party must strictly comply with the Notification. The concerned Notification reads as follows :- "In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts speciality oils, falling under sub-heading No. 2710.99 or 3403.00 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), from so much of the duty of excise leviable thereon which is specified in the said Schedu....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the Speciality oil, which is exempted, is a preparation made by blending or compounding of mineral oil (falling under Chapter 27 of the Schedule to the Central Excise Tariff Act, 1985) with "other oils or any other substance". It is, thus, clear that all Speciality oils are not exempted under this Notification. Only those Speciality oils where the mineral oil is blended or compounded with other oils or any other substance, are exempted. This becomes further clear from a reading of the proviso. The proviso clarifies that nothing in this Notification will apply to a Speciality oil which is manufactured by blending or compounding of mineral oil falling under Chapter 27 of the Schedule. Thus, not only the explanation but the proviso makes it c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....oils is not correct. Thus, there could be "blending or compounding" only of mineral oils falling under Chapter 27. There could also be blending or compounding of mineral oils with other oils or other substances and the explanation makes it clear that the Speciality oil exempted under this Notification is only such Speciality oil which is manufactured by blending or compounding of mineral oil with other oil or any other substance. 6. It was next submitted that in respect of the same party, for an earlier period, by Order-in-Appeal No. 224/Cal-I/90, dated 17th December, 1990 and by Order-in-Appeal No. 226/Cal-I/90, dated 17th December, 1990, the Commissioner (Appeals) had negatived the contention of the Revenue that benefit of Notification....