TMI Blog2013 (9) TMI 821X X X X Extracts X X X X X X X X Extracts X X X X ..... d at the bottom of storage tank and was removed gently along with some oil cannot be held to be an excisable item emerged as a result of manufacturing process - We find that Commissioner (Appeals) had discussed the issue in detail and had rightly held that such Soya Gum and recovered oil cannot be held to be the goods emerging as a result of manufacture - Soya Gum and the other impurities were part and partial of the purchased crude oil - The same settle down during the storage of the crude oil in the storage tanks - The upper part of the crude oil was further taken up for refining of the same. What was left at the bottom of the storage tanks was the impurities which were already contained for the said crude oil - As such the impurities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner (Appeals), revenue has filed the present appeal. We have heard Shri R.K. Mathur, learned DR appearing for the revenue. Nobody appeared for the respondents. 2. As per facts on record the respondents are engaged in the manufacture of Refined Oil falling under chapter heading No.1503.00 of the Central Excise Tariff Act, 1985. For the said purpose they purchased the crude vegetable oil from the market, which contains some impurities like fine particles of Soya Seed and Soya Gum. The Seed crude oil purchased by them from market is stored in the storage Tanks. And the impurities lying therein are settled at the bottom of tank. As such, impurities including the Soya Gum are settled at the bottom of the tank and are gently removed in separ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Deputy Commissioner, Central Excise Customs, Division-Ratlam, were called wherein it was stated as follows"- "It is not correct that soya gums and recovered oil came into existence without any manufacturing activity. Infact crude oil is stored in oil tanks, these crude oil contain some impurities such as thick and sticky oil and other agriculture impurities. When the crude oil is stored in storage tanks these impurities settle down at the bottom of the tank which are removed in a separate tank and rest of the oil is issued to refining section for refining process rest of gums from crude soya bean oil is separated by using a separator which is also run mechanically. The above mentioned impurities stored in separate tanks for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id or solid, obtained by pressure, shall be considered as "crude" if they have undergone no processing other than decantation, centrifugation or filtration, provided that, in order to separate the oils from solid particles only mechanical force, such as gravity, pressure or centrifugal force, has been employed, excluding any adsorption filtering process, fractionation or any other physical or chemical process. If obtained by extraction an oil shall continue to be considered as "crude"provided it has undergone no change in colour, odour or taste when compared with the corresponding oil obtained by pressure." "In view of above, as long as the process of decantation, centrifugation or filtration i.e. only mechanical forces such as gra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has to be in the nature of being boiled sulphurised or hydrogenated or which should result in chemical process. I find that the treatment given by the Appellant is not covered under the said note as simple filtration to remove the solid impurities has been carried out. Therefore, the residuces are not covered under Chapter 15.07 as upheld by the Adjudicating Authority." 8. After going through the above reasoning of Commissioner (Appeals), the appeal filed by the Revenue and the argument advanced by the learned DR, we find that there is no dispute about the factual position and the manufacturing process. The question to be decided is as to whether the Soya Gum which is settled at the bottom of the storage tank along with some oil and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacture of refined oil, it cannot be said that the appellant have manufactured Soya Gum and recovered oil. The same one admittedly a part of the crude oil, which does not get converted into refined oil. A part of the crude oil has been used by the appellant for the manufacture of the refined oil and a part of the crude oil, which could not be used for the manufacture of refined oil, stands sold by them as Soya Gum and recovered oil. Accordingly we agree with the detailed findings of Commissioners (Appeals), wherein he has taken into account the explanatory note to Chapter 1507.00, the report of the Deputy Commissioner, as also the explanatory note of Chapter 15. We find no infirmity in his views. As a consequence, the appeal filed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
