COLLECTOR OF CENTRAL EXCISE, HYDERABAD vs JAYANT OIL MILLS PVT. LTD.

The Supreme Court held that hydrogenated rice bran oil, used as a raw material in soap-making, is classifiable under Tariff Item No. 12 of the Central Excise Tariff, as it does not constitute a new product post-manufacture. The Court emphasized that the process of hydrogenation does not change the identity and purpose of the oil sufficiently to classify it under Tariff Item 68. The appeals by the Department under Section 35L of the Central Excises and Salt Act were dismissed, affirming the lower authorities' classification.