2018 (10) TMI 751 – CESTAT NEW DELHI – TMI – Waste/By-products – benefit of N/N. 89/95-CE dated 18th February, 1995 – soap stock (gum), sludge, fatty acid oil, spent earth etc. arising during the course of manufacture of refined edible oils – Held that:- Identical issue has come up for consideration before the Tribunal in the Appellants’ own case M/s Udyog Mandir vs CCE&ST, Jaipur-I [2018 (5) TMI 1711 – CESTAT NEW DELHI], where by following the judgment of the Larger Bench in the case of M/S RICELA HEALTH FOODS LTD., M/S J.V.L. AGRO INDUSTRIAL LTD., M/S KISSAN FATS LIMITED VERSUS CCE, CHANDIGARH, ALLAHABAD [2018 (2) TMI 1395 – CESTAT NEW DELHI], it was held that the removal of unwanted materials resulting in products like gums, waxes and fatty acid with odour cannot be called as a process of manufacture of these gums, waxes and fatty acid with odour.
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Benefit of notification cannot be denied – appeal allowed – decided in favor of appellant. – Excise Appeal No. 51756 of 2018 – A/5
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oap stock (gum), sludge, fatty acid oil, spent earth etc. arise. The Department was of the view that the Appellants should have paid duty of excise on clearance of dutiable by-products, such as, soap stock (gum), sludge, fatty acid oil, spent earth getting manufactured/generated in the process of manufacturing refined edible oil. Accordingly, a show cause notice was issued which culminated into impugned order. The basic contention of the Appellant is that, they are entitled for the benefit of Notification No. 89/95-CE dated 18th February, 1995 and by virtue of this Notification, they are not required to pay any duty on such products as mentioned in the show cause notice. The Notification No. 89/95-CE dated 18/02/1995 exempts waste, parings and scrap manufactured in a factory manufacturing some final product which is either chargeable to nil rate of duty or is fully exempted from duty by an exemption notification issued under Section 5A of Central Excise Act, 1944. The basic contention
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in this appeal is no longer res-integra as the Larger Bench of this Tribunal in its interim order No. 8-11/2018 dated 30th January, 2018 has already decided the issue, wherein it has been held that:- (a) The items in dispute are not in the nature of by products emerging during the course of manufacture of refined edible oil; (b) The removal of unwanted materials resulting in products like gums, waxes and fatty acid with odour cannot be called as a process of manufacture of these gums, waxes and fatty acid. The process of manufacture is for refined rice brain oil; (c) The items in question cannot be called as manufactured excisable goods. These incidental products are nothing but waste arising during the course of refining of rice brain oil and as such cover by the exemption Notification No. 89/95-CE. 5. Following the above judgment of the Larger Bench in the case of Ricela Health Foods Ltd. and ors. vs. CCE, Chandigarh, the regional bench of this Tribunal in Allahabad has also extende
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