TaxTMI 
TaxTMI 
2018 (8) TMI 1167
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....as a by product. Soap stock is further converted to Acid Oil and Soap Sludge and cleared to various soap manufacturers without payment of duty. According to department, soap stock was classifiable under Central Excise Tariff Heading 15220020 and the residue soap sludge under CETH 15220090 and acid oil under CETH 38231900. Department took the view that Excise duty was required to be discharged by the appellants on acid oil and soap sludge. Accordingly, a show cause notice dt. 25.11.2010 was issued to the appellants, inter alia proposing demand of Central Excise duty of Rs. 23,81,941/- with interest and also imposition of penalty under Section 11AC of the Act. After due process of adjudication, the original authority vide an order dt. 27.05.2....
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....onfusion on availability of exemption under Notification No.89/95-CE, which had been referred to the Larger Bench of Tribunal. Only on the bonafide belief that duty exemption under Notification No.89/95-CE was very much available, the appellant had cleared the goods without payment of duty. v) Since the issue is one of interpretation the allegation of intention to evade duty is not sustainable. vi) They placed reliance upon the ratio of the following case law : (1) Steelcast Ltd. Vs CCE Bhavnagar 2009 (14) STR 129 (Tri.-Ahmd.) (2) CCE Pune Vs Core Fitness (P) Ltd. 2017 (4) GSTL 80 (Tri.-Mumbai) (3) Padmini Products Vs CCE - 1989 (43) ELT 195 (SC) (4) CC Vs Cochin Minerals & Rutiles Ltd. 2010 (259) ELT 182 (Ker.) 3. On the other h....
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....h held that removal of unwanted material resulting in products like gum, wax, and fatty acid with odour cannot be called as a process of manufacture of such items. The process of manufacture is for refined rice bran oil; As such the incidental products are nothing but waste arising during course of refining of rice bran oil and applying the ratio of Apex Court, this cannot be considered as manufactured excisable goods. The said goods cannot be considered as anything other than waste and as such will be covered by the Exemption Notification No.89/95-CE. 5.2 We note that the ratio of Ricela Health Foods Ltd. (supra) has been followed by CESTAT Chennai in Sri Devi Oil Pvt.Ltd. Vs CCE Salem - 2018 (5) TMI 1117- CESTAT Chennai and SSD Oil Mills....
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.... Indian Aluminium Company (supra) and of the various Tribunal's decisions like Ricela Health Foods Ltd. (supra) and others would squarely apply with regard to ‚soap stock‛, hence it cannot be held as excisable goods and denied benefit of Notification No.89/95-CE. However, as per the facts on record, Soap Stock is then consciously again processed by the appellants which results in emergence of Acid Oil and Soap Sludge. It then cannot be said that emergence of acid oil is an unintended by product. 5.5 Viewed in this context, the acid oil is an intended final product resulting out of conscious process of soap stock. The said acid oil would then have to be considered as a new product with a different name, character and use, and ex....