Appellant granted stay on demand for 'Refined Rice Bran Oil' exemption, no pre-deposit required.

The appellant sought waiver and stay for a demand on certain products arising during the manufacture of 'Refined Rice Bran Oil'. The demand was based on denial of exemption under Notification No. 89/95 CE. The Bench noted previous relief granted to the appellant in a similar case. The appellant referenced a representation to CBEC for a notification under Section 11C of the Central Excise Act. Considering ongoing surveys and potential future notifications, no pre-deposit was required under Section 35F. The stay application was allowed in light of the Board's position on recovery during surveys under Section 11C.

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Issues:
1. Waiver and stay application regarding demand on 'Rice Bran Fatty Acid', 'Rice Bran Wax', and 'Rice Bran Gums'.
2. Denial of exemption under Notification No. 89/95 CE.
3. Interpretation of items as waste or manufactured products.
4. Reference to previous cases and Tribunal decisions.
5. Representation to CBEC for notification under Section 11C.
6. Circulars issued by the Board regarding recovery of duties.
7. Applicability of Section 35F of the Central Excise Act.

Analysis:

1. The appellant filed an application seeking waiver and stay for the demand amounting to Rs. 20,38,015 on 'Rice Bran Fatty Acid', 'Rice Bran Wax', and 'Rice Bran Gums' arising during the manufacture of 'Refined Rice Bran Oil'. The demand was based on the denial of exemption under Notification No. 89/95 CE as these items were considered not to be waste. The Bench noted a previous case where similar relief was granted to the same assessee. The Superintendent (AR) opposed the plea, citing a Tribunal decision and a Stay Order from a Coordinate Bench regarding similar items emerging during the manufacture of refined vegetable oil.

2. The appellant referred to a representation submitted by the Solvent Extractors Association of India to the CBEC for issuing a notification under Section 11C of the Central Excise Act. The Board was considering the plea against the recovery of duty on items like gums, waxes, soap stocks, and fatty acids arising during the refining of crude vegetable oils. A survey was initiated by the Board to assess the practice of assessing such goods. The appellant also mentioned a Circular issued by the Board in 2002 advising against coercive recovery of duties during such surveys.

3. It was acknowledged that the appellant and other manufacturers had requested the Board for a notification under Section 11C for the by-products emerging during the manufacture of refined vegetable oils. The Board had initiated a survey in response to the representation. The Circular issued in 2002 prohibited coercive recovery of duties on goods subject to such surveys. Given the ongoing survey and the possibility of a Section 11C notification in the future, no pre-deposit was deemed necessary under Section 35F of the Central Excise Act to safeguard revenue during the appeal process. The stay application was allowed, considering the Board's stance on recovery during surveys under Section 11C.

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