TMI Blog1997 (1) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... nts buy the raw naphtha from others. The question is to be judged regardless of this, and the question is whether the intervention of the raw naphtha would justify the finding that the said products are not "derived from refining of crude petroleum". The refining of crude petroleum produces various products at different stages. Raw naphtha is one such stage. The further refining, or cracking, of raw naphtha results in the said products. The source of the said products is crude petroleum. The said products must, therefore, be held to have been derived from crude petroleum. In favour of assessee. - Civil Appeal No. 3828 of 1990 - - - Dated:- 6-1-1997 - S.P. Bharucha and K. Venkataswami, JJ. J. Vellapally and R.P. Srivastava, Advocates, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ried on) declared under sub-rule (2) of Rule 140 of the Central Excise Rules, 1944, to be a refinery". If the said products are held to fall under Item 11AA, the said Exemption Notification, it is not in dispute, will apply. 4.The Tribunal noted the arguments on behalf of the Revenue that the said products were "not derived directly from refining crude petroleum. Refining of crude petroleum means the first product obtained by refining of crude petroleum. The products in dispute in this case are derived from cracking raw naphtha" which was obtained by the appellants from the oil refineries. The Tariff Advice upon which the Revenue sought to change the classification of the said products from Item 11AA(2) to Item 68 took the ground that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... There were no words in the notification to restrict it only to cases where rice bran oil was directly used in the factory claiming exemption and to exclude cases where soap was made by using rice bran fatty acid derived from rice bran oil. The whole purpose and object of the notification was to encourage the utilisation of rice bran oil in the process of manufacture of soap in preference to various other kinds of oil used in such manufacture and this should not be defeated by an unduly narrow interpretation of the language of the notification even when it was clear that rice bran oil could be used for manufacture of soap only after its conversion into fatty acid or hydrogenated oil. 6.Learned counsel submitted that the aforesaid judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rude petroleum. 9.The dictionaries state that the word "derive" is usually followed by the word "from", and it means : get or trace from a source; arise from, originate in; show the origin or formation of. 10.The use of the words "derived from" in Item 11AA(2) suggests that the original source of the product has to be found. Thus, as a matter of plain English, when it is said that one word is derived from another, often in another language, what is meant is that the source of that word is another word, often in another language. As an illustration, the word "democracy" is derived from the Greek word "demos", the people, and most dictionaries will so state. That is the ordinary meaning of the words "derived from" and there is no reason t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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