TMI Blog1979 (7) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... products is prescribed by Item 13 of the Central Excise Act. The vegetable non-essential oils attract the excise duty under tariff Item No. 12. From the vegetable products it is possible to manufacture various kinds of soaps, fatty acids, greases, lubricants or can be used as protective agent in the manufacture of plate. The soaps which are manufactured from vegetable non-essential oil fill within tariff entry No. 15 for the levy of excise duty. 2. The production and sale of vegetable oils and vegetable products has been regulated by the Government of India by an order known as Vegetable Oil Products Control Order, 1947. Under the provision of this order the Controller has regulated the manufacture and sale of vegetable tallows. The petitioners from time to time applied to the Controller and sought permission to manufacture vegetable tallow and under the orders the petitioners are required to supply the production to the party named in the permit issued by the Controller. 3. The Government of India issued notification dated January 14, 1956, whereby the vegetable products are exempted from the payment of excise duty leviable thereon provided the Collector of Central Excise is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of the whole of the excise duty leviable thereon : (a) all sorts of vegetable non-essential oils, other than processed vegetable non-essential oils; (b) vegetable non-essential oil, whether produced in the factory of production of the excisable goods specified below or elsewhere, if used after it is processed in the manufacture of- (i) goods falling under Item Nos. 13, 14 and 15 of the First Schedule to the Central Excises and Salt Act, 1944; and (ii) artificial or synthetic resins falling under Item No. 15A of the said Schedule : Provided that, in respect of the vegetable non-essential oil produced elsewhere than in the factory of production of the said excisable goods, the procedure set out in Rule 56A of the Central Excise Rules. 1944. is followed : Provided further that no such exemption shall be allowed in respect of vegetable non-essential oils used in the manufacture of finished excisable goods if such finished excisable goods produced by the manufacturer are exempted from the whole of the duty of excise leviable thereon or are chargeable to nil rate of duty. Explanation. - For the purpose of this notification processed vegetable non-essential oil means a v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contended that the second proviso to notification (Exhibit 'B') clearly takes out the claim of exemption made by the petitioners. The learned Counsel further submitted that the vegetable tallow is finished excisable goods and the contrary contention of the petitioners is totally unjust. In view of these rival contentions the question which falls for determination is whether the vegetable tallow is a finished excisable goods and even if it is so whether the petitioners can be deprived of exemption under the notification Exhibit 'B', dated 1st March, 1963. Mr. Desai submitted that the vegetable tallow is manufactured by process of hydrogenation from vegetable non-essential oil and the vegetable tallow is not an end product in itself but can be used for manufacture of soaps or other articles. The learned Counsel submitted that the vegetable tallow not being a finished excisable goods, the second proviso to notification Exhibit 'B' is not at all attracted. 8. The petitioners had claimed both in the petition and before the authorities below that the vegetable tallow is not a product which can be used in itself and the Department has not very seriously disputed that position. The Depa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertain cases from exemption given by the notification. Mr. Desai submits that such carving out of exemption from the general provision must be strictly construed, and the proper meaning should be given to the term `finished excisable goods". It cannot be overlooked that one is not construing the provisions of a Statute but the wording of a notification and reasonable meaning should be given to find out the exact meaning of it. In this connection Mr. Dalal rightly submitted that the first proviso refers to the procedure to be followed under Rule 56A in respect of vegetable non essential oil produced elsewhere than in the factory and that Rule 56A(2) contains the identical provision as the second proviso in the notification Exhibit B. Mr. Dalal submits that reading of Rule 56A clearly indicates that the notification never intended to make any distinction between the finished excisable goods and intermediate materials. Mr. Dalal submits that Rule 56A makes it very clear that vegetable tallow is finished excisable goods. It was also contended on behalf of the Department that the vegetable tallow is marketable and sold in the market as finished goods and therefore, it must be treated as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... low is not exempted totally but only if it is used for manufacture of soaps the advantage of notification Exhibit `C' should be available to the petitioners. It is not possible to accede to this submission. The second proviso to notification Exhibit 'B' specifically takes out cases where finished excisable goods is exempted from the whole of the duty leviable thereon and it is not in dispute that no excise duty is leviable or payable in respect of the production of the petitioners for the relevant periods. If the petitioners have enjoyed benefit of notification Exhibit 'C' and have claimed exemption from the whole of duty leviable on vegetable tallow which was a finished excisable goods then it is futile to contend that the advantage of notification Exhibit `B' is still available and no duty can be levied on vegetable non-essential oil. In fact Mr. Dalal rightly submitted that this alternative contention raised by Mr. Desai was neither argued before the authorities below nor a contention has been raised anywhere in the present petition and the petitioners should not be permitted to advance contentions only at the stage of arguments. I have considered the submissions of Mr. Desai on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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