NAVASARI OIL, PRODOUCTS LTD Vs. SUPERINTENDENT OF CENTRAL EXCISE, CUSTOMS, NAVASAIR

JUDGEMENT

(1.) The petitioner is a company which manufactures at Navasari Fatty acids which are consumed by textile industry. On 2nd February, 1953, teh petitioner obtained a licence under teh Central Excises and Salt Act, 1944. That licnce was renewed up to 31st Decmber, 1979. It ws a licnece under which the petitioner was authorized to obtain without payment of duty leviable thereon "vegetable product" to be paid by them in the manufacutre of stearic cacit. In 1968 the petitioenr obtained a licence under Central Excies and Salt Act, 1944, to manufacrure super-hardened oil. Both these licences were renewed from year to year and had been in force when this petition was filed. The super-hardened oil which the petitoiner has been kanufacturing was not subject to excise duty. It is indeed a "vegetable prroduct". Entry 13 in teh First Schedule to the Centrla Excises and Slat Act, 1944, subjects "vegetable product" to exccise duty. However, there was an exemption notification issued by the Central Government under which vegetable product was exempted from payment of excise duty which was otherwise leviable thereon if, the Collector of Central Excise was satisfied that the vegetable product was intended for use

(2.) The Central Excsie authoritis, therefore, demanded of the petitoiner excise duty on super-harened oil under they 13 in the First Schedule. The petitioner contendd that duty on super- hardened oil was not leviable under ntyr 13 in teh First Schedule and that it would be leviable under the resiuduary entry int he First Schedule entry 68. it appearrs that the Central Excise authorities did not accpet the contentio raised by the petitioner.

(3.) The petitioner has, therefore, filed this petition. The quesiton which arises for our consideration in this petition is whether super hardened oil porduced or manufacturer by the petitioner is subject to the payment of excise duty either under entry 13 or under entry 68 in the First Schedule to the Central Excises and Salt Act, 1944. Entry 13 in the First Schedule reads thus : <FRM>JUDGEMENT_23_LAWS(GJH)1_1980_1.html</FRM>