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TMI Blog2005 (12) TMI 368X X X X Extracts X X X X X X X X Extracts X X X X ..... ff by a common order. 2. The facts relating to the case may be stated as follows :- The appellants are engaged in the manufacture of chemicals along with oxidized vegetable oil falling under Chapter Heading 1508.90 attracting Nil rate of duty. The item, oxidized vegetable oil, is not an oil, which is extracted from either oil seeds or such materials bearing plant origin, which may attract cess. The said oxidized vegetable oil is prepared from Soyabean oil by adding hydrogen peroxide, formic acid, phosphoric acid as well as caustic soda lye. All the above ingredients are poured in one vessel and mixed, Which prepares the product oxidized vegetable oil. 3. The Central Excise Department started issuing Show Cause Notices from July ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spute about the leviability of cess on vegetable oil, which is produced from oil seeds or any other oil bearing material of plant origin. What they contend is that the oil, which is prepared by them, does not fall within the meaning of oil produced from oil seeds or oil bearing material of plant origin and therefore, no cess is leviable. It is further contended that the Commissioner (Appeals) has erred in interpreting the word 'processing'. 7. The Commissioner (Appeals) has relied upon the interpretation given by the Tribunal in the case of M/s. Coromandal Agro Products v. Collector of Central Excise reported in 1992 (58) E.L.T. 158 (Tribunal) wherein it was held that the National Oil Seeds & Vegetable Oils Development Board Act, 1983 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earing material and the plant so that it can be said in such cases, for instance as in the case of oil derived from the limbs, flowers, barks, etc. that their origin is the plant. No cess can, therefore, be derived under Section of the Cess Act as it is not covered by the definition of the expression 'vegetable oil' in Section 3(h) of the Board Act. (b) M/s. Coromandal Agro Products v. Collector of Central Excise - 1992 (58) E.L.T. 158 (Tribunal) In the above case, it is observed that the expression "Vegetable Oil" has been defined in Section 3(h) of the National Oil Seeds and Vegetable Oils Development Act, 1983 "as any oil produced from oil seeds, or any other oil bearing material of plant origin and containing glycerides but does not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture of a waste or a by product obtained during the course of processing of rice in the rice mill - not fit for human consumption - In view of this and object underlying the enactment of the Cess Act, viz. to make available funds to the National Oil Seeds and Vegetable Oil Development Board so as to enable the said Board to promote the development and growth of oil seeds industry and vegetable oils industry, rice bran oil does not fall within the ambit of definition of 'vegetable oil' contained in Section 3(h) of National Oil Seeds and Vegetable Oil Development Board Act - Not leviable to cess under Vegetable Oil Cess Act, 1983. 10. Following the ratio laid down in the aforesaid decision, it is to be held that the oxidized vegetable o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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