9911796707
TMI Blog2005 (4) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... ter Vijay Oil Mill applied for exemption from licencing control and for permitting the Appellants to discharge all the excise liabilities and procedural formalities on their behalf. 3.The declaration filed along with the letter is relevant and it reads as follows :- "FORM OF AUTHORISATION TO BE FILLED IN BY A MANUFACTURER WHO GETS HIS GOODS MANUFACTURED/ FABRICATED FROM ANY OTHER PERSON AND TO BE AGREED TO BY THE LATTER From : VIJAY OIL MILL Full Address : Outside Majevadi, Gate, JUNAGADH-362001 Phone No. if any : 25347/25397 To, The Superintendent of Central Excise, Range JUNAGADH Division - Junagadh AUTHORISATION I/We, Vijay Oil Mill, Outside Majevadi Gate, Junagadh hereby authorize M/s. Vinay Solvent Extraction Industries Private Limited of Sukhpur, Junagadh (holding Central Excise licence in form L.-4 No. JUN/VNEO/2/80 to manufacture/fabricate on my/our behalf Refined Oil (Excisable commodity) falling under Central Excise Tariff Item No. 1503.10 and to comply on my/our behalf all the procedural formalities under the Central Excises & Salt Act, 1944 and Rules made thereunder and also to furnish information relating to the price at which I/we sell the said goods (excis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jay Oil Mill, who would supply the oil cakes to the Appellants and the Appellants would produce at the rate of Rs. 500/- per metric ton of 1000 Kgs. (if the oil was a solvent extracted oil) and at the rate of Rs. 700/- per metric ton (for other oils). The rates include unloading of raw material and loading of finished goods at the cost of the Appellants. Vijay Oil Mills was to pay a minimum charge, which was to meet all standing expenses. 7.The Appellants filed a classification list classifying the product manufactured by them under Tariff Sub-Heading 1503.10 of the Schedule to the Central Excise Tariff Act, 1985. In the classification list the Appellants claimed benefit of Notification No. 262/86-C.E., dated 24th April, 1986. 8.Seven show cause notices were issued to the Appellants on the ground that they were not entitled to the benefit of the said Notification as they had not produced certificates as required under Clause (iii) of the said Notification. The Appellants then produced certificates from the Directorate of Vanaspati, Vegetable Oils and Fats to the effect that vegetable oil manufactured by "Vijay Oil Mill" had been manufactured from fixed vegetable oil extracted by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions, namely :- (i) the said processed fixed vegetable oil has been manufactured from fixed vegetable oils extracted by the solvent extraction method; (ii) the manufacturer shall maintain record regarding manufacture of the said processed fixed vegetable oils and their clearance in the manner specified by the Assistant Collector of Central Excise; (iii) the manufacturer shall within such period as the Assistant Collector of Central Excise may allow in this behalf produce a certificate from an officer not below the rank of a Deputy Director in the Directorate of Vanaspathi, Vegetable Oils and Fats to the effect that the said processed fixed Vegetable oils have been manufactured from fixed vegetable oils extracted by the solvent extraction method; and (iv) the manufacturer undertakes to pay on demand in respect of such quantity of the said processed fixed vegetable oils as is not proved to the satisfaction of the Assistant Collector of Central Excise to have been manufactured from fixed vegetable oils extracted by solven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only requires a manufacturer, i.e. the Appellants, to produce a certificate to the effect that the processed vegetable oil had been manufactured from, fixed vegetable oils extracted by the solvent extraction method. He submitted that such certificates were produced by the Appellants. He submitted that the Appellants were not disentitled merely because the certificates mentioned that the fixed vegetable oils were manufactured by Vijay Oil Mills. We see no substance in this submission. The required certificate must necessarily show that the oil manufactured by the manufacturer (in this case the Appellants) had been manufactured from fixed vegetable oils extracted by the solvent extraction method. The manufacturer producing a certificate that some other party had manufactured processed oil from fixed vegetable oils extracted by solvent extraction method is obviously not sufficient. 16.Faced with this situation Mr. Lakshmikumaran submitted that the Tribunal has given a categorical finding to the following effect : "...... In the instant case, it is nobody's contention that Vinay Oil hired Vijay Oil to manufacture on the former's account. On the contrary, the entire factory was lease ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n by the Judicial Member. Undoubtedly, the third Member of the Tribunal appears to have accepted this case. However, it has been correctly held that Vijay Oil Mills would not be entitled to the benefit of the Notification as they do not have a licence under the Central Excise Act and do not comply with any of the formalities under the Central Excise Act. More importantly they are not paying any excise duty. A party who admittedly is not paying excise duty cannot claim exemption from duty. 20.Mr. Lakshmikumaran then submitted that as the facts were confusing the matter should be remanded back to the Assessing Officer so that correct facts could be ascertained. We are unable to accept this submission. The Appellants have accepted the authorization. They have shown themselves to be manufacturers. The Appellants are complying with the formalities under the Central Excise Act. The Appellants maintain the requisite records. The Appellants clear the goods. Condition No. (ii) of the Notification has been complied with by the Appellants and not by Vijay Oil Mill. It is the Appellants who had filed the classification list. It is the Appellants who had claimed the benefit of the said Notific ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
