2016 (11) TMI 1129

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....peals), Meerut-II. The issue in this appeal is whether the appellant engaged in the manufacture of Rice Bran Oil & Solvent Extraction Industry and further refined the same to make it edible oil in which process two bye-products/waste products arise, namely, fatty acid & wax. Whether the appellant is entitled to exemption on fatty acid and waxes under Notification No. 115/75-CE dated 30-04-1975. 2. The appellant manufactures Rice Bran Oil from Rice Bran by the solvent extraction process and such Rice Bran Oil is further refined by process of Degumming , Bleaching , Dewaxing & Deodorisation , during which the Fatty Acid (Chapter Heading 382300) & Wax (Chapter Heading 150700) are obtained as the bye-products along with the upgraded Rice Bra....

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....extraction technique, hence did not fall in the category of Oil Mill & Solvent Extraction Industry. Accordingly, denying the exemption, the proposed demand of Rs. 3,72,411/- as Central Excise duty and Rs. 7,449/- as Education Cess was confirmed and also penalty of Rs. 2,00,000/- was imposed under Rule 25 of the Central Excise Rules, 2002. 4. Being aggrieved the appellant preferred appeal before ld. Commissioner (Appeals) who was pleased to dismiss the appeal, agreeing with findings of the Adjudicating Authority. 5. The ld. Counsel for the appellant urges that the issue is no longer res-integra and the same have been explained and clarified by Hon'ble Supreme Court in the case of Bombay Oil Industries Ltd. Versus Commissioner of Centra....