Saraiwwalla Agrr Refineries Ltd., Versus CCE, C & ST, Hyderabad-II And Commissioner of Central Excise, Customs and Service Tax, Guntur, Nellore And Rangareddy – GST
Central Excise
2018 (3) TMI 838 – CESTAT HYDERABAD – TMI
CESTAT HYDERABAD – AT
Dated:- 1-2-2018
E/30967/2016, E/30968/2016, E/2101/2012, E/26181/2013, E/20216/2015, E/22027/2015, E/31158/2016, E/31159/2016, E/31160/2016, E/31161/2016, E/31162/2016, E/31155/2017, E/31298/2017 – FINAL ORDER No. A/30233-30245/2018
Central Excise
MR. M.V. RAVINDRAN, MEMBER (JUDICIAL) AND R. MADHU MOHAN DAMODHAR, MEMBER (TECHNICAL)
[Order per: Bench]
Appeal Nos. E/30967 & 30968/2016 are directed against Orders-in-Appeal Nos. HYD-CEX-002-APP-013 and 014-16-17 CE dated 22.07.2016.
2. When these two matters were called out, Learned Counsel Shri Anwar Ali submits that similar/identical matters of the very same appellants are pending before this Bench for adjudication. He produces the list of appeals. We called for
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Agrr Refineries Ltd.,
Commissioner of Customs, Central Excise & Service Tax, Nellore
OIA No. VIZ-EXCUS-003-APP-022-16-17 dated 26.08.2016
7.
E/31160/2016
Saraiwwalla Agrr Refineries Ltd.,
Commissioner of Customs, Central Excise & Service Tax, Nellore
OIA No. VIZ-EXCUS-003-APP-023-16-17 dated 26.08.2016
8.
E/31161/2016
Saraiwwalla Agrr Refineries Ltd.,
Commissioner of Customs, Central Excise & Service Tax, Nellore
OIA No. VIZ-EXCUS-003-APP-024-16-17 dated 26.08.2016
9.
E/31162/2016
Saraiwwalla Agrr Refineries Ltd.,
Commissioner of Customs, Central Excise & Service Tax, Nellore
OIA No. VIZ-EXCUS-003-APP-025-16-17 dated 26.08.2016
10.
E/31155/2017
Saraiwwalla Agrr Refineries Ltd.,
Commissioner of Central Tax, Guntur- GST
OIA No. VIZ-EXCUS-003-APP-023-17-18 dated 17.07.2017
11.
E/31298/2017
Saraiwwalla Agrr Refineries Ltd.,
Commissioner of Central Tax, Rangareddy GST
OIA No. HYD-EXCUS-RRC-APP-010-17-18 (APP-I) dated 14.09.2017
On perusal of the same
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these appeals the appellant had claimed the benefit of the same notification for non discharge of Central Excise duty on the products as indicated herein above. We reproduce the ratio from the Larger Bench decision headed by the Honble President as contained in paragraph No. 10 & 11:
“10. In view of the ratio adopted by the Apex Court while arriving at the above decisions, the point for consideration in the present dispute is the gums, waxes and fatty acid that emerge as a by-product can be considered as a products arising out of a manufacturing process. The appellants are engaged in converting crude rice bran oil into refined rice bran oil. In effect the processes undertaken by them are towards this intended final product. For producing refined rice bran oil, the gums and waxes available in the crude rice bran oil are to be removed by de-guming and de-waxing. Thereafter by a process of de-acidification/de-odourisation, by distillation the refined oil
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e intermediating stages also. The point for consideration is whether these are to be considered as manufactured goods for excise levy based on the statutory definition for manufacture or should be considered as manufactured goods based on the likely value they may command while selling. We are clear that the value that a product may or may not fetch cannot be a determinative factor to decide whether the same is a manufactured final product/by product or a waste/refuse arising during the course of manufacture of final products. This much is clear from the ratio of the Apex Court decision in Indian Aluminium Co. (supra). While no general guidelines can be laid down to decide when a product will be treated as a waste or a by-product, in the present set of facts the products under consideration are clearly not in the nature of by-products emerging during the course of manufacture. The process of manufacturing refined vegetable oil is essentially by removing th
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