9911796707
TMI Blog1997 (8) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... respondent had been reversed. By the impugned order Collector (Appeals) had held that the appellant s product, Oxygen Gas and Hydrogen Gas falling under Chapter Heading 28.04 is covered by Notification No. 115/75 as amended and should be eligible for the benefit of the Notification. 2. Appellants are engaged in the manufacture of various products falling under Chapter 15 (Animal or vegetable fat, oils etc.) as well as under Chapter 28 (Inorganic Chemicals etc.) of the Central Excise Tariff Act, 1985. They also manufacture oxygen gas and hydrogen gas. Hydrogen gas was utilised for hydrogenation of vegetable oil and oxygen gas was sold to outsiders by clearing it through pipelines and after paying duty. They claimed benefit of Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot material for the present purposes) were exempted which was further amended by Notification No. 127/88, dated 1-3-1988. Collector (Appeals) had held that on a plain reading of the said notification the benefit of exemption could not be restricted to industries falling under erstwhile Tariff Item 68. He had, therefore, held that the benefit of the exemption could not be denied to the Respondents. SDR contended that the Collector (Appeals) had erred in extending the scope of Notification No. 115/75 as the amending Notification No. 127/88, dated 1-3-1988 was only [clarificatory] in nature. While Notification No. 115/75 specifically exempted industries manufacturing goods falling under Tariff Item 68, the amending notification only omitted re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Notification No. 127/88 was only clarificatory in nature and should not be [interpretted] as having extended the scope of Notification No. 115/75. Respondent s case is that they are not claiming exemption for their product `vanaspati falling under Chapter Heading 15.04 and 15.08, but for oxygen gas falling under Heading No. 28 which is other than vegetable oils covered under Heading 15.03 and vegetable fats and oils coming under Heading 15.04 as stipulated under the said notification. For purposes of manufacturing `vanaspati respondents buy edible oils and specially subject the oils to processes like curing, bleaching, refining, hydrogenating etc. The respondents, therefore, also contend that their processes would rightly be entitled t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edule to the notification. It is noted that before 1986 the exempted goods mentioned in Notification No. 115/75 covered only Tariff Item 68 goods. This did not include oxygen which fell under erstwhile Tariff Item 15H. In the light of the departmental clarification No. 91/3/87, dated 4-5-1988 stating that Notification No. 127/88 was only clarificatory in nature, it cannot be said that the exemption under Notification No. 115/75 would cover all goods manufactured in the factories/industries specified in the Schedule. 7. In view of the above we hold that the Respondent s claim for exemption in respect of oxygen is not admissible and the Collector (Appeals) has wrongly set aside the Assistant Collector s order disallowing the said benefit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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