1997 (2) TMI 119 - SC - Central Excise

Summary

Issues involved: Interpretation of a notification granting exemption to goods manufactured in specific industries, specifically focusing on the inclusion of solvent extraction plants under the oil mill and solvent extraction industry.

Summary:
The appellants operated a solvent extraction plant in Kerala producing oleoresins from spices. They availed the benefit of a notification (No. 115/75) from 1975 to 1985, which exempted goods manufactured in specified industries, including the oil mill and solvent extraction industry. In 1986, the notification was amended to exclude certain vegetable oils. The Assistant Collector denied the appellants the benefit of the notification for 1985, stating they did not manufacture vegetable oils as commonly known. The Collector (Appeals) disagreed, but the Customs, Excise and Gold (Control) Appellate Tribunal ruled against the appellants, stating that essential oils were outside the scope of the notification's exemption.

The notification exempted goods from factories in the oil mill and solvent extraction industry. The Tribunal's interpretation of the notification was deemed narrow, as the appellants' goods were manufactured in a solvent extraction plant and should receive the exemption benefit. The notification had not specifically excluded essential oils and oleoresins produced by solvent extraction plants, despite amending it to exclude certain vegetable oils in 1986.

Ultimately, the Supreme Court set aside the Tribunal's decision, confirming the Collector's order in favor of the appellants. The appeal was allowed with no order as to costs.