TaxTMI 
TaxTMI 
2013 (11) TMI 991
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....ove items, Egg Shell is a residue from raw material namely egg and the same is processed, powdered and sold to M/s. SKM Feeds and Foods India Ltd., who are manufacturers of Animal and Poultry Feeds. The issue involved in this appeal is whether such Egg Shell Powder is a manufactured item on which excise duty was to be paid. The period of dispute is April 2003 to April 2004. 2. The manufacturing process of Egg Shell Powder as recorded in the order-in-original reveals that first eggs are broken and then egg-white, yolk and albumin are removed for the manufacture of Whole Egg Powder, Egg Yolk Power and Egg Albumin Powder. Egg shells left behind are collected and subjected to the process of heating. When heated such shells lose the smell and....
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....ore, cannot be said the result of treatment, labour or manipulation whereby a new and different article emerges with a distinctive name, character or use which can ordinarily come to the market to be brought and sold. Merely because such refuse or scum may fetch some price in the market does not justify it being called a by-product, much less an end-product or a finished product. 5. He argues that the egg shells are only heated and then powdered and such process cannot amount to manufacture considering the decision in Wolkem India Ltd Vs. CCE-1997 (92) ELT 219 (Tribunal) upheld by Apex Court as reported at 1998 (102) ELT A224(SC). He submits that the content of the product sold is the same as that in naturally occurring egg-shells and h....
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....sts that these are manufacturing processes. He further submits that the resultant product is a calcium supplement, which is used as an ingredient in manufacture of animal feed. This is not a case where waste or rubbish is cleared as such this is a case where the waste is further processed to acquire the nature of calcium supplement for animal feed to be used in industry and the decisions given in respect of waste cleared as such cannot apply in this case. The final product namely Egg Shell Powder cannot be considered as waste or rubbish according to him. 8. He relies on the decision of the Tribunal in the case of Lubrizol Advanced Materials India Pvt. Ltd. Vs Commissioner of Central Excise, Vadodara-I reported in 2013 (290) E.L.T.453 (Tr....
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....g activity. Similar were the facts in U.O.I Vs Indian Aluminium Co. Ltd. reported in 1995 (77) E.L.T. 268 (S.C) wherein Aluminium sheets were getting manufactured from duty paid ingots and dross arising was not a value added product. However in the case of CCE Vs Indian Aluminium Co. Ltd. reported in 2006 (203) E.L.T. 3 (S.C.) the Hon. Apex Court extended the ratio of these decisions to dross arising during manufacture of aluminium sheets from aluminium oxide and held it to be not liable to duty. The product of the case before us is similar to dross generated during manufacture of aluminium sheets from aluminium oxide. 10. In the case of cassia meal examined by Tribunal in Lubrizol Advanced Materials India Pvt. Ltd we find from para 8 of....