1990 (12) TMI 111

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..... nt Collector that the claim of drawback on Salfat Oils would cover only refined oil as clarified by the Ministry in their letter dated 30-4-1985; and (2) Whether application of Rule 3 of the Drawback Rules as raised for the first time in the order of the Collector (Appeals) should apply ? 2. As regards the first issue it is to be noted that classification of Salfat Oil had been under considerati .....

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..... ves further bleaching, decolourisation and treatment with other items on which duty may be payable. It is only after this stage that drawback could become due; for there cannot be any drawback in respect of export of an item in the manufacture of which no duty paid material has been used. Therefore, from the totality of circumstances it is clear that refined nature of salfat oil was necessary cond .....

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..... k Rules there is no doubt about its applicability. However, on one point order of the Collector (Appeals) is silent and it is that in the manufacture of refined salfat oil a number of chemicals are also used. His order speaks of non-payment of duty only on salfat seeds alone. The question naturally arises that what would be the position in cases where Central Excise (or Customs) duty is paid only .....

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