TaxTMI 
TaxTMI 
2009 (5) TMI 419
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.... respondents are manufacturers of edible vegetable refined oil and vanaspathi falling under sub-heading Nos. 1508/1510/1512/1516 etc., of the Central Excise Tariff, the respondents procure crude vegetable oil from various sources and convert/process the: same into refined vegetable edible oils and vanaspathi. During the course of processing of crude vegetable oils into refined vegetable oils, "soap stocks" emerge as a by-product apart from sludge etc., From the manufacturing process of the refining of vegetable oils, it is inevitable that "soap stocks" emerge as a by-product, which is normally used in the manufacture of soap. The respondent cleared the by-product/soap stocks by paying the duty @ 16% adv., under sub-heading No. 1507.00....
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....aste product and claimed exemption from payment of duty in terms of FOI Notification No. 89/95-C.E. The 'Adjudication authority' relied on the decision of the Hon'ble CESTAT, Delhi bench in the case of Commissioner of C.E., Raipur v. Hindustan Steel Works Construction Ltd. [2005 (179) E.L.T. 85 (Tri.-Del.], wherein it was laid down that the benefit of exemption to waste arising during the manufacture of exempted products is available as long as the assessee is not manufacturing any other excisable goods other than exempted goods. He concluded that the by-product viz., soap stock is specifically classifiable under 1522.00 20 of the CETH and leviable to duty at the rate applicable in the tariff as long as the assessee is not eligible for the ....
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....cited, I feel the matter cannot be reopened. Since the issue can be disposed off on this ground, I do not intend to go into other issues raised. I did not find any reason, as to why the same issue in respect of the same assessee-respondent for a later period was taken up for appeal resulting in this appeal." 3. Learned JCDR and learned DR appearing on behalf of the revenue in these matters would submit that the learned Commissioner (Appeal's) findings as regards the resjudicata is not applicable in this case. They would reiterate the grounds of appeal which are as under: "The OIO No. 15/2006 dated 7-6-2006 pertaining to the same issue in respect of the same assessee for the previous period i.e. 3/05 to 11/05 extending the benefit of Notif....
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.... that exemption under Notification No. 85/95 cannot be extended to the by-products as they are having definitive characteristic and commercial uses. It was urged that, the impugned order be set aside and their appeals be allowed. 5. Learned JCDR would rely upon the decision of the Supreme Court in the case of C.K. Gangadharan v. Commr. of Income Tax, Cochin as reported at 2008 (228) E.L.T. 497 (S.C.) and submitted that the ratio of the said case will be squarely-applicable to this case also. It is also submitted that non-filing of appeals in the similar cases does not bar filing of appeal in any other case. She would exhort us to consider the meaning of the words 'waste' as given in the New Webster's Dictionary of English Language and subm....
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.... the revenue to prefer an appeal in another case, where there is just cause for doing so. Or it is in public interest to do so or for a pronouncement by the higher Court when divergent views are expressed by the Tribunals or the High Courts." It may be seen from the above reproduced, answer given by the Apex court that the issue before the Hon'ble Court was regarding the appeal being filed in some cases and an appeal being not filed in another case and also when there are divergent views expressed by the Tribunal or High Court. In the case before us we find that in respect of both the respondents, an identical issue was raised and lower authorities have held in favour of the respondents. These earlier Orders were reviewed by high authoriti....
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.... we find that the soap stock is a product which arises/emerges during the manufacture of refined vegetable oil. The respondent had always contended before the lower authorities that the soap stock which emerges is not at all a by-product but a waste product. It is the contention of the revenue that the soap stock which emerges during the course of manufacture of vegetable oil has a distinctive name, character and use and is specified under Central Excise Tariff 1522 00 20. There is no dispute to the finding that the soap stock arises during the refining of edible oil. Just because waste, gets some price it cannot be automatically classified under Central Excise Tariff Heading No. 15.22. We find that the decision of the Supreme Court in the ....