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TMI Blog1987 (1) TMI 244X X X X Extracts X X X X X X X X Extracts X X X X ..... oil or mixture of such oil with any other oil from a certain quantum of duty based on the quantum of the rice bran oil used in the manufacture of such soap. The appellants claim is that the rice bran fatty acid and rice bran oil are the same things and therefore, they are entitled to the benefit of concessional assessment on the soap in the manufacture of which rice bran fatty acid is used. The lower authority has, however, rejected the appellants plea on the ground that rice bran fatty acid and rice bran oil are technically and commercially two separate commodities and, therefore, the concession available in respect of use of rice bran oil cannot be made applicable where the rice bran fatty acid is used. There is no dispute as to the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fication No. ^6/72-CE, dated the 17th March, 1972 which grants exemption from duty on soap which is produced from rice bran oil or from a mixture of rice bran oil and other oils. It has been brought to the notice of this Ministry that the benefit of exemption is not being allowed by the Central Excise Officers where rice bran oil or oil mixture is hydrogenated or pre-treated be we the soap is produced. The matter has been considered in detail with the concerned authorities and keeping in view the technical opinion tendered by them that rice bran oil as such sometimes cannot be used directly and has to be pre-treated before use in the manufacture of soap, it is hereby clarified that the exemption will be admissible when the rice bran oil is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmercially and technically the rice bran oil and rice bran fatty acid are two distinct identifiable commodities and inasmuch as the notification benefit is available in respect of use of rice bran oil, it cannot be made available when rice bran fatty acid is used in the manufacture of soap. 4. We observe that the concession given under notification No. 25/75 is apparently with a view to encourage the use of rice bran oil in the soap industry. The point for consideration is whether the rice bran oil for the purpose of benefit of notification should be brought into the factory of manufacturer as such and then subjected to various pre-treatments required for its use in the soap industry or whether the same could be treated outside the factor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the manufacturer. The eligibility to the concessional assessment of a product manufactured by the manufacturer has to be determined with reference to the particular manufacturer subject to the fulfillment of the conditions as may be set out in the relevant concessional notification. In the instant case, a verification will be required to be done in respect of the following: (1) The nature of the oil used - whether rice bran oil or otherwise; (2) The quantum used; (3) The processes of pre-treatment carried out on the rice bran oil and the fraction thereof used for the soap making. 6. Now if the rice bran oil has been pre-treated outside the appellants factory it is not possible for jurisdictional authorities to verify the facts in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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