AHMED COMERBHOY MILLS Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners (who are the appellants herein) inter alia manufacture and process vegetable oils and manufacture other products therefrom. The petitioners have their factory at Ahmed Oomer Street, Two Tanks, Bombay-8. The petitioners, inter alia, manufacture vegetable non-essential oil. They process this oil in order to remove impurities. The processed vegetable non-essential oil is then hydrogenated to produce vegetable tallow which according to the petitioners themselves is a vegetable product. This vegetable tallow is sold and/or used in the manufacture of soap and other products. In respect of vegetable tallow in question the parties have proceeded on the footing that vegetable tallow is used in the manufacture of soap.

(2.) Central Excise tariff entry 12 deals with vegetable non-essential oil of all sorts. Under tariff entry 12 a notification No. 33/63 dated 1st of March, 1963 has been issued under which, inter alia, vegetable non-essential oil falling under item 12 is exempt from the payment of the whole of the excise duty leviable thereon if "used after it is processed in the manufacture of goods falling under item Nos. 13, 14 and 15 of the First Schedule to the Central Excises and Salt Act, 1944". The second proviso to this notification which was introduced for the first time on 9th October, 1971 provides that

(3.) The relevant entries in the present case are entries 13 and 15. Entry 13 deals with vegetable products. It says 'vegetable product' means any vegetable oil or fat which, whether by itself or in admixture with any other substance, has by hydrogenation or by any other process been hardened for human consumption." Entry 15 deals with soap.