2018 (3) TMI 838 – CESTAT HYDERABAD – TMI – Demand of duty – products arising when crude vegetable oil into refined vegetable oils, like Gums/Soap Stock/Wax/muddy/Liquid Sludge/Palm Fatty Acid Distillate etc. – Held that: – an identical issue in the case of M/s Ricela Health Foods Ltd., and Others [2018 (2) TMI 1395 – CESTAT NEW DELHI] were before the Larger Bench of the Tribunal, where it was held that the appellants are eligible for exemption under N/N. 89/1995 CE dated 18.05.1995 – appeal allowed – decided in favor of appellant. – 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 – Dated:- 1-2-2018 – 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
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COM-002-15-16-CE dated 29.05.2015 5. E/31158/2016 Saraiwwalla Agrr Refineries Ltd., Commissioner of Customs, Central Excise & Service Tax, Guntur OIA No. VIZ-EXCUS-003-APP-021-16-17 dated 26.08.2016 6. E/31159/2016 Saraiwwalla 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
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ard the matter on 15.01.2018 and by an order dated 30.01.2018 held that the appellants are eligible for exemption under Notification No. 89/1995 CE dated 18.05.1995. 5.In all 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 bra
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lt. These products either emerged in the final stage or any of the 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 vegetabl
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