2000 (4) TMI 74 - AT - Central Excise

Summary

Issues:
1. Condonation of delay in filing supplemental appeal.
2. Applicability of Exemption Notification under Notification No 115/75-C.E. to Acid oil soap obtained as a by-product.
3. Interpretation of the scope of Oil Extraction Industry.
4. Consideration of HSN classification and explanatory notes.
5. Binding nature of previous Tribunal decisions and trade notices.

Issue 1: Condonation of Delay
The Tribunal allowed the condonation of delay in filing the supplemental appeal by M/s. Andhra Sugars Ltd., considering the long-standing practice where such delays are condoned if the main appeal was filed within time.

Issue 2: Applicability of Exemption Notification
The Tribunal considered the applicability of Exemption Notification under Notification No 115/75-C.E. to Acid oil soap obtained as a by-product. The learned Counsels argued that previous Tribunal decisions in similar cases had held that Acid oil was eligible for exemption under the said Notification. They also referred to the HSN classification, which supported the view that soap stock oil is a by-product of the oil refining industry.

Issue 3: Interpretation of Oil Extraction Industry
The learned DRs contended that Acid oil or soap stock, being connected with processes other than the extraction of oil, did not qualify for the Notification. They argued that the Oil Extraction Industry is limited to the extraction of oil, whereas the soap product or Acid oil emerges from further refining processes. The Tribunal, however, found merit in the submissions of the learned Counsels and previous Tribunal decisions, which held that the Notification would be applicable to Acid oil.

Issue 4: Consideration of HSN Classification and Explanatory Notes
The Tribunal analyzed the explanatory notes to the HSN, which included soap stock within the category of oil extraction. They found that the HSN classification supported the argument that Acid oil soap should be considered a by-product eligible for exemption under the Notification.

Issue 5: Binding Nature of Previous Tribunal Decisions and Trade Notices
The Tribunal noted that their decision was in line with earlier Tribunal decisions in cases such as Godrej Foods Ltd. and Mehta Vegetable Products (P) Ltd. They emphasized that the law on this matter was well-settled, and the decisions of the Tribunal had acquired finality. The Tribunal also considered a trade notice issued by the Guntur Central Excise Collectorate, which further supported the applicability of the Notification to Acid oil soap.

In conclusion, based on the detailed analysis of the issues involved and the precedents set by previous Tribunal decisions, the Tribunal set aside the orders impugned and allowed the appeals with consequential relief, affirming the applicability of the Exemption Notification to Acid oil soap obtained as a by-product.