TaxTMI 
TaxTMI 
2018 (11) TMI 965
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.... the appellants are manufacturers of Refined Edible Oil. Based on Intelligence gathered by the Central Excise officers that the appellant are engaged in the manufacture of Refined Edible Oil (Sunflower oil) and that certain by-products viz. Fatty Acid, Waxes, Spent Earth are obtained during the manufacture of the Refined Edible Oil. Whereas, the Refined Edible Oil (Sunflower oil) is exempted from payment of Central Excise duties, the by-products Fatty Acid, Waxes & Spent Earth are excisable and central excise duties is liable to be paid on such clearances. However, the appellants had failed to obtain Central Excise Registration to pay duty on such clearances. Accordingly, the officers carried on the investigation and obtained the details of....
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....l, the wastage generated i.e. Free Fatty Acid, Waxes and Spent Earth which are inevitable waste. She further submitted that the appellant never intended to manufacture the same and the same cannot be considered as a result of manufacturing process since it is a waste and is exempted under Notification 89/95 CE dated 18.05.1995. She further submitted that this issue is no more res integra and has been settled by the Larger Bench of the Delhi Tribunal of the CESTAT in the case of M/s. Ricela Health Foods Ltd. Vs. CCE, Chandigarh, Allahabad reported in 2018 (361) E.L.T. 1049 (Tri. - LB) in Excise Appeals No. 653, 3585 of 2012 and 60685, 60723 of 2013 and has held that the assessee is eligible for exemption under the said Notification as the by....
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....both the parties and perusal of the material on record, we find that on the issue involved in the present case there was conflicting decisions of the Division Benches of the Tribunal and the matter was referred to the Larger Bench and the Larger Bench after considering various decisions including the decision in A.G. Fats Ltd. relied upon by the Revenue has answered the reference in favour of the assessee. Here it is relevant to reproduce the relevant finding of the Larger Bench which is contained in paras 11 & 12 and is reproduced herein below: "11. The thrust of the arguments by the Revenue is that when a product is capable of being sold for a significant consideration the same cannot be considered as waste. We are unable to accept suc....
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....w that the removal of unwanted materials resulting in products like gums, waxes and fatty acid with odour cannot be called as a process of manufacture of these gums, waxes and fatty acid with odour. The process of manufacture is for refined rice bran oil. As such, we note that these incidental products are nothing but waste arising during course of refining of rice bran oil and applying the ratio of Apex Court, as discussed above, these cannot be considered as manufactured excisable goods. Noting that the reference is to decide whether these are to be treated as waste for the purpose of exemption Notification No. 89/95-C.E. we note though the excisability of the product itself is seriously in dispute as per the opinion expressed by us, as a....