TaxTMI 
TaxTMI 
2023 (3) TMI 535
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.... by CESTAT- Hyderabad in the case of M/s. PRIYANKA REFINERIES PVT LTD UNIT II- 2019 (7) TMI 249. He also placed reliance on the decision in the case of M/S. RICELA HEALTH FOODS LTD., M/S. J.V.L. AGRO INDUSTRIAL LTD., M/S. KISSAN FATS LIMITED- 2018 (2) TMI 1395-CESTAT NEW DELHI. 03. Shri Prakash Kumar Singh, learned Superintendent (AR) appearing on behalf of the revenue reiterates the finding of the impugned order. 04. We have carefully considered the submissions made by both the sides and perused the records. We find that the issue to be decided is that during the course of manufacture of vegetable refined oil which is exempted, the emergence of spent earth is liable to excise duty or otherwise. We find that the very same issue has been c....
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....ein, the tribunal has observed as under:- 5. We have heard the learned counsels for the appellants. The learned counsels submitted on the process undertaken by the appellants starting from the receipt of crude rice bran oil. The following flow chart was presented to explain the process:- The learned Counsel mainly submitted on the following lines:- (a) the products, in question, are essentially inevitable waste, which the appellant never intended to manufacture and, as such, cannotbe considered as a result of manufacturing process; (b) without prejudice to the above, the products, in question, are clearly exempted under Notification 89/95- CE. The Revenue itself contends that wax, fatty acid and gums are waste arising during the cou....
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....ivision Bench and, as such, the other connected disputes with reference to classification, valuation, Cenvat credit, penalty etc. would have to be decided by the appropriate Division Bench after the decision of the Larger Bench on the referred dispute. 8. The learned AR submitted that waste and by-product have different scope and meaning. There is a clear distinction between these two. By- products emerge as unavoidable outcome of a manufacturing process and do have significant commercial value. Waste on the other hand is such type of by-product which is generally in the nature of rejects or refuse, fit to be discarded. They have little or no commercial importance. All products emerging during the course of main final products cannot be c....
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....is not a manufacture". Every change of an article may be the result of treatment, labour and manipulation. The manufacture would Imply something more. There must be a transformation; a new and different article must emerge having a descriptive name, character or use (Delhi Cloth and General Mills Company Ltd. - AIR 63 SC 791). The Apex court categorically held that dross do not answers the description of "waste and scrap". 10. In view of the ratio adopted by the Apex court while arriving at the above decisions, the point for consideration in the present dispute is the gums, waxes and fatty acid that emerge as a by-product can be considered as a products arising out of a manufacturing process. The appellants are engaged in converting crude....
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....ed goods based on the likely value they may command while selling. We are clear that the value that a product may or may not fetch cannot be a determinative factor to decide whether the same is a manufactured final product/by product or a waste/refuse arising during the course of manufacture of final products. This much is clear from the ratio of the Apex court decision in Indian Aluminium Co. (supra). While no general guidelines can be laid down to decide when a product will be treated as a waste or a by product, in the present set of facts the products under consideration are clearly not in the nature of by products emerging during the course of manufacture. The process of manufacturing refined vegetable oil is essentially by removing the....