2019 (1) TMI 235 – CESTAT NEW DELHI – TMI – Waste product or not – gad, sludge, acid oil and spent earth, etc. – N/N. 89/95–CE dated 18.05.1995 – whether the impugned by-products arising in the course of said crude vegetable oils are to be treated as waste or not? – Held that:- This issue has been dealt with by this Tribunal in Ricela Health Foods Ltd. Vs. CCE, Chandigarh & Allahabad [2018 (2) TMI 1395 – CESTAT NEW DELHI] where it was held that the removal of unwanted materials resulting in products like gum, fatty acid and wax (as therein) cannot be called as the process of manufacture of these products and the same cannot be considered to be manufactured excisable goods. It was further held that same were merely waste and thus eligible for exemption under Notification No. 89/95-CE.
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The Order confirming the demand even for the normal period is therefore not sustainable – Appeal allowed – decided in favor of appellant. – Excise Appeal No. E/52742/2018 [DB] – A/53337/2018-EX[DB]
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Notification No. 115/75-CE dated 30.04.1975 despite that the exemption of the said Notification has been withdrawn by the Notification No. 21/2006-CE dated 01.03.2006. Resultantly, two Show Cause Notices dated 05.02.2014 for the period w.e.f. 01.04.2010 to 31.12.2013 demanding a duty of ₹ 46,18,619/- and dated 03.02.2015 for the period 01.01.2014 to 31.12.2014 demanding a duty ₹ 14,74,980/- respectively were served upon the appellant under Section 11A(1) of Central Excise Act, 1944. The interest at appropriate rate and the proportionate penalties were also proposed. The said demand was confirmed vide Order No. 34-35 dated 21.09.2015. Being aggrieved the Appeal was before the Commissioner(Appeals) who vide the Order under challenge had upheld the demand for the normal period of limitation only and the penalty was reduced to ₹ 5 lakhs instead of penalty of ₹ 46,18,619/- + ₹ 3 lakhs. Still being aggrieved, the appellant is here before this Tribunal. 2. We ha
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prayed to be set aside and Appeal is prayed to be allowed. Ld. Counsel has relied upon the decision of this Tribunal in appellants own case titled as Arihant Solvex Pvt. Ltd. Vs. CCE, Jaipur 2015(316) ELT 290(Tri.-Del.). 4. Per contra, Ld. DR has justified the impugned order impressing upon that Commissioner (Appeals) has been justified and reasonable while appreciating the entire facts and circumstances. There are enough reasons recorded in the Order for not considering the decisions of appellant s own case. Appeal is accordingly prayed to be dismissed. 5. After hearing both the parties and going through the entire record of the present Appeal, we observe and held as follows:- The admitted fact of the case is that the appellant manufactures refined vegetable oil by processing of crude oil and in course of refining of said crude vegetable oils, gad, sludge, acid oil and spent earth, etc. emerge as unavoidable by-products. During the period of dispute, the refined vegetable oil, the fin
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oods. It was further held that same were merely waste and thus eligible for exemption under Notification No. 89/95-CE. The relevant provision of the Order is as follows:- 11. …………….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 the unwanted materials that were present in the crude vegetable oil so that a refined vegetable oil can be obtained. In this process of refining, the unwanted materials are removed. Hence, we are of the considered view 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. The process of manufacture is for refined rice bran
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n is as follows:- 4. We have considered the facts of the case and the appellants contention. The Hon ble Supreme Court in the case of Markfed Vanaspati & Allied Indus. (supra) has held that spent earth remained earth even after the processing and therefore no duty is leviable on spent earth. It is also seen that in the case of Maheshwari Solvent Extraction Ltd. (supra), the Hon ble CESTAT held that impurities consisting of gums, waxes and fatty acids are eligible for the benefit of Notification No. 89/95-CE. Similarly, in the case of CCE, Hyderabad Vs Shree Siddhi Vinayaka Agro Extractions P. Ltd. 2010-TIOL-183-CESTAT-BANG. the Hon ble CESTAT held that soap stock and wax emerging during process of manufacture of vegetable refined oil is waste and not a by-product and is therefore, eligible for the benefit of Notification No. 89/95. The goods in dispute herein i.e. gad (gum), sludge (soap stock), acid oil and spent earth merely emerge during the manufacture of refined oil and are co
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