2022 (5) TMI 252

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....llant is a manufacturer of refined palm oil and Vanaspati ghee classifiable under CETH 15 16 2029. That, in order to make the final product marketable and to facilitate handling, the Appellant had in-house facility for manufacture of empty tins and HDPE jars for packing of its final product. The empty tins and HDPE jars manufactured in-house were captively consumed/used in the packing of its final products. The Appellant had been availing exemption from excise duty thereof under Notification No.10/96-CE dated 23.07.1996, which extends exemption to all goods if the same are consumed within the factory of their production in the manufacture of goods specified in the table wherein all goods classifiable under Chapter 15 (except 1571 10 22, 152....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ndigarh, Allahabad [2018 (361) E.L.T. 1049 (Tri.LB)], wherein the Tribunal has applied the ratio as laid down by Hon'ble Supreme Court in the case of Commissioner of Central Excise Vs. Indian Aluminium Co. Ltd. [2006 (203) E.L.T. 3 (SC)] and held that these incidental products are nothing, but wastes arising during the course of refining of palm oil and cannot be considered as manufactured excisable goods and that these wastes will also be covered by the exemption Notification No.89/1995-CE. It is further submitted that 'fatty acid' is not manufactured as excisable goods from 'crude palm oil', rather it is the waste arising in the course of manufacture of vanaspati ghee/refined palm oil. He further submitted that the Adjudicating authority ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s held as under:- "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 such summary presumption. Admittedly, in chemical and metallurgical industry when the raw materials are processed with an intended purpose of manufacturing certain final products by a chemical reaction, refining, melting etc. multiple products will result. These products either emerged in the final stage or any of the intermediating stages also. The point for consideration is whether these are to be considered as manufactured goods for excise levy based on the statutory definition for manufacture or should be considered as manufa....