Waste treatment of fatty acid and soap stock in refined palm oil manufacture led to excise duty relief.

Fatty acid and soap stock generated in the manufacture of refined palm oil were treated as waste for the purpose of Notification No. 89/95-CE, following the Larger Bench ruling on the nature of these by-products. On that basis, they were held not liable to central excise duty, and the demand was found unsustainable. The impugned order was set aside, the appeal was allowed, and consequential relief was granted.

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Issues: Whether fatty acid and soap stock arising in the manufacture of refined palm oil were liable to central excise duty.

Analysis: The Tribunal followed the Larger Bench ruling which had considered the nature of fatty acid and soap stock generated in the course of manufacture of refined palm oil. It noted that these products had been treated as waste for the purpose of Notification No. 89/95-CE and, on that basis, were held not liable to duty.

Conclusion: The demand was not sustainable. The impugned order was set aside and the appeal was allowed with consequential relief.

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