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TMI Blog2005 (9) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... y blending or compounding of mineral oil falling under Chapter 27 of the Schedule. Thus, not only the explanation but the proviso makes it clear that the exemption is only to the Speciality oil which has been manufactured by blending or compounding of mineral oil (falling under Chapter 27) with other oils or any other substance. The Notification being clear and unambiguous, the opinions expressed by the Commissioner (Appeals) as well as CEGAT cannot be sustained. Both the Commissioner (Appeals) as well as CEGAT have erroneously proceeded to base their decisions on the difference in meanings between the words "blending" and "compounding". Thus, there could be "blending or compounding" only of mineral oils falling under Chapter 27. There coul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 710.99 or 3403.00 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), from so much of the duty of excise leviable thereon which is specified in the said Schedule as is in excess of the amount calculated at the rate of 12% ad valorem. Provided that nothing contained in this notification shall apply to any such speciality oil manufactured by blending or compounding of any mineral oils (falling under Chapter 27 of the said Schedule on which the duty of excise leviable under section 3 of the Central Excises and Salt Act, 1944 (1 of 1944) or the additional duty leviable under section 3 of the Customs Tariff Act, 1975 (51 of 1975), as the case may be, has not already been paid. Explanation. - For the purposes of this notificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y oil which is manufactured by blending or compounding of mineral oil falling under Chapter 27 of the Schedule. Thus, not only the explanation but the proviso makes it clear that the exemption is only to the Speciality oil which has been manufactured by blending or compounding of mineral oil (falling under Chapter 27) with other oils or any other substance. The Notification being clear and unambiguous, the opinions expressed by the Commissioner (Appeals) as well as CEGAT cannot be sustained. Both the Commissioner (Appeals) as well as CEGAT have erroneously proceeded to base their decisions on the difference in meanings between the words "blending" and "compounding". The reasoning that "blending" only means straight blending of mineral oils ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and by Order-in-Appeal No. 226/Cal-I/90, dated 17th December, 1990, the Commissioner (Appeals) had negatived the contention of the Revenue that benefit of Notification No. 287/86-C.E., dated 5th May, 1986 was not available to Speciality oils which were obtained by only blending and compounding of mineral oils. It was submitted that no Appeal had been filed against those Orders. It was submitted that the Revenue having accepted those orders cannot now be permitted to take a contrary stand. In support of this submission, reliance was placed upon the authorities of this Court in the case of Collector of Central Excise, Pune v. Tata Engineering and Locomotives Co. Ltd. reported in 2003 (158) E.L.T. 130 (S.C.) and Birla Corporation Limited v. C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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