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of <h1>Tribunal rules sludge from soya bean oil storage not subject to excise duty</h1> <h3>M/s. Ambika Solvex Ltd. Versus C.C.E. Bhopal</h3> The Tribunal allowed the appeal, ruling in favor of the appellant, holding that the settled sludge during the storage of soya bean oil was not subject to ... Waste - Manufacture or not? - At the time of storage of soya bean oil the sludge was settled in the bottom of the storage tank - whether demand of excise duty on such sludge justified or not? - Held that: - in the assessee’s own case identical issue has come up before the Tribunal in the case of CCE Vs. Ambika Refinery [2013 (9) TMI 821 - CESTAT NEW DELHI], where it was held that Soya Gum which was settled at the bottom of storage tank and was removed gently along with some oil cannot be held to be an excisable item emerged as a result of manufacturing process - appeal allowed - decided in favor of appellant. Issues:- Dispute over excise duty on settled sludge during storage of soya bean oil.Analysis:The appeal was filed against Order-in-Appeal No.267/16-17 dated 07.09.2016, concerning the period from April 2008 to February 2012. The appellant, engaged in manufacturing refined soya bean oil, faced a demand for excise duty on the sludge settled in the storage tank during the storage of soya bean oil. The appellant contended that the sludge was waste and not subject to excise duty. The Tribunal referred to a previous case, CCE Vs. Ambika Refinery, where a similar issue was addressed. In that case, it was established that the soya gum settled at the bottom of the storage tank, along with some oil, and the subsequent separation of oil from the sludge did not constitute goods emerging from a manufacturing process. The Tribunal concurred with the Commissioner (Appeals) in that case, who had determined that the sludge and recovered oil were part of the crude oil itself and not separate excisable items. Consequently, the Tribunal set aside the impugned order and allowed the appellant's claim, aligning with the decision in the earlier case.Therefore, based on the precedent set in the previous case and the detailed analysis provided, the Tribunal allowed the appeal filed by the appellant, ruling in favor of the appellant's contention that the settled sludge during the storage of soya bean oil was not subject to excise duty.
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