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2005 (9) TMI 93 - SC - Central ExciseWhether this Notification No. 287/86-C.E., dated 5th May, 1986 exempts all Speciality oils or only certain types of Speciality oils? Held 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 clear that the exemption is only to the Speciality oil which has been manufactured by blending or compounding of mineral oil (falling under Chapter 27) with other oils or any other substance. The Notification being clear and unambiguous, the opinions expressed by the Commissioner (Appeals) as well as CEGAT cannot be sustained. Both the Commissioner (Appeals) as well as CEGAT have erroneously proceeded to base their decisions on the difference in meanings between the words "blending" and "compounding". 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. Appeal is allowed. The impugned Order of CEGAT, as well as the Order of the Commissioner (Appeals) are set aside. The Order of the Assistant Collector is restored.
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