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TMI Blog2008 (1) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri R. Nair, Advocate, for the Appellant. Shri C.S. Rajput, DR, for the Respondent. [Order per : Justice S.N. Jha, President]. - These two appeals on behalf of M/s. Prakash Solvex and M/s. Prakash Soya were taken up together and are disposed of by this common order. In Appeal No. E/822/2005 (M/s. Prakash Solvex), the appellant has been asked to pay duty of Rs. 11,19,682/- and penalty of Rs. 20,000/-. In Appeal No. E/828/2008 (M/s. Prakash Soya Ltd.), the demand is for Rs. 9,00,968/- as excise duty. 2. It may be stated, at the outset, that in the case of M/s. Prakash Solvex, the appellant does not dispute the demand to the extent of Rs. 42,427/- as duty leviable on shortage of oil and Rs. 1,02,975/- on clearance of refined ed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s from the oil seeds etc., the manufacturers were not entitled to the benefit of the said notification which exempts refined edible oil manufactured by the oil mill and solvent extraction industry. The plea of the Revenue was rejected in the case of A.P. Solvex Ltd. v. CCE, Ludhiana (supra) observing that no such condition had been imposed in the Notification that the entire extraction of raw rice bran oil (which was the subject input in that case), should be carried out in the factory by the manufacturer for claiming exemption from payment of duty on refined edible oil. The Tribunal in conclusion relied upon a decision of the Bangalore Bench in CCE v. Aggarwal Industries Ltd., 2005 (186) E.L.T. 174 (T), as well as a decision of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eing by-products of the manufacturing process in the appellant's factory, cannot be subjected to levy of excise duty as they are covered by the exemption notification. Faced with the decision in A.P. Solvex Ltd. v. CCE. Ludhiana (supra), the learned DR submitted that the benefit envisaged in the exemption notification is available only in cases where the unit is engaged in the manufacture of oil by process of extraction. In the instant case, it was pointed out that 97% of the manufacturing activities carried out in the case of M/s. Prakash Solvex and 99% in the case of M/s. Prakash Soya, involve purchase of crude oil from open market and only negligible quantity involves extraction from fatty acid etc. The appellants not being solvent e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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