S.N.Variava, J. - (1.) THESE Appeals are against the Judgment dated 16th November, 1998 of the Customs Excise and Gold (Control) Appellate Tribunal [CEGAT].
(2.) BRIEFLY stated the facts are as follows: The Appellants purchase edible vegetable oil from the open market. On the oil purchased by them excise duty has been paid by the manufacturer. The Appellants subject this oil to certain processes for the purposes of refining the oil. After refining the oil, the Appellants sell the refined edible oil in the market. The Appellants filed, on 1st September, 1984, a classification list in respect of the refined oil sought to be cleared from the factory. It was mentioned therein that since no manufacturing activity was involved, no duty was payable on their clearances. On 17th September, 1984, the Superintendent of Central Excise returned the Classification List and called upon the Appellants to clear the goods on payment of excise duty at the rate of Rs. 100/- per metric ton and special excise duty at 5% of the basic excise duty. The Appellants filed Civil Writ Petition No. 3215 of 1984 in the Rajasthan High Court contending that since there was no manufacture, excise duty was not payable. On 23rd October, 1984, the Rajasthan High Court passed an interim order permitting the Appellants to clear the refined oil from its factory subject to the Appellants furnishing a solvent security at the rate of Rs. 105 per metric ton. This interim order was confirmed on 5th February, 1987. Pursuant to the interim order, for the period prior to March 1986, the Appellants cleared their goods on furnishing security. For the period after March 1986, the Appellants were issued show-cause notices. The Appellants filed reply to the show-cause notices. By an Order dated 1st January, 1988 the Assistant Collector held that the refined oil cleared by the Appellants was classifiable under Tariff Item 1503.10 and duty of Rs. 40,47,586.25 was payable by the Appellants. The Appellants filed an Appeal against the Order of the Assistant Collector. On 25th January, 1991, Writ Petition No. 3215/84 was finally disposed of by the Rajasthan High Court. A direction was issued to the Assistant Collector to decide the issue of classification of the said oils. Pursuant to the directions of the High Court, the Assistant Collector gave a personal hearing to the Appellants and then passed Orders dated 18/19th February, 1991 holding that a new and distinct product had been manufactured. It was held that that the said product was classifiable under sub-heading 1503.10 and duty was payable on the same. Against this Order also, an Appeal was filed by the Appellants on 2nd March, 1991.
(3.) THE Appeal filed by the Appellants against the Order dated 1st January, 1988 was dismissed by the Collector (Appeals) on 30th July, 1991. THE Appellants then filed a further Appeal to CEGAT against the Order dated 30th July, 1991. On 22nd January, 1992, the Collector (Appeals) dismissed the Appeal filed against the Order dated 18/19th February, 1991. Against this Order, the Appellants filed Appeals before CEGAT.;