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TMI Blog1984 (10) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... d oil' is popularly known as 'Vegetable Tallow' or 'hard lump', but that it is not known as "processed vegetable non-essential oil" in the market. The petitioner says that the raw castor oil is subjected to a process of clarification and then hydrogenated at a melting point over and above 45 degrees and converted into hard lumps, which are unfit for human consumption. According to the petitioner this 'industrial hard oil' or 'hard lumps', as it may be called, is not dutiable under any of the provisions of the Central Excises and Salt Act, 1944. The authorities, however, took a contrary view and sought to levy the duty under Tariff Item No. 12. This is the controversy in the writ petition. 2. The proceedings commenced with the issuance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on-essential oil and is therefore exempt from duty by virtue of Notification No. 33/73, dated 1-3-1963. The Appellate Authority negatived all these contentions. It held that the process employed by the petitioner for obtaining clarified oil is in effect and in truth "bleaching" referred to in the aforesaid notification. It also held that the clarified oil is a marketable commodity and therefore goods. With respect to the complaint as to the shift in ground of levy of duty, the Appellate Authority held that there was no violation of principles of natural justice and that even if there is any omission, it is merely technical. It held that the show cause notice clearly called upon the petitioner to show cause why the oil manufactured by him sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation No. 33/63, dated 1-3-1963. It reads as follows : "Exemption to certain unprocessed and processed V.N.E. Oil.- In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempt the following vegetable non-essential oils, falling under Item No. 12 of the First Schedule to the Central Excise and Salt Act, 1944 (1 of 1944) from the whole of the duty of excise leviable thereon- (a) all sorts of vegetable non-essential oils, other than processed vegetable non-essential oils; (b) vegetable non-essential oils, falling under Item No. 12 of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944), whether produced in the factory of production of the excisa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the clarified oil, which is now held leviable to duty, is not a processed vegetable non-essential oil. While it is not disputed that it is a vegetable non-essential oil, the dispute is whether it is processed or not. Upon this question again both the Appellate and Revisional Authorities have held, on a consideration of the process employed by the petitioner for obtaining the clarified oil, that it is in effect and in truth a bleaching process. Now the meaning and expression of the words "processed vegetable non-essential oil" is mentioned in the explanation contained in the notification, according to which 'bleaching' is one form of processing. In this case it is held that the raw castor oil undergoes bleaching by treatment with activated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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