2023 (4) TMI 429

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....r CETH 84029090 of the first Schedule to the CETA 1985. Based on intelligence gathered by Anti Evasion Wing that the appellant cleared scrap generated in the course of final product during the period 01.03.2006 to 31.12.2010 without payment of central excise duty, investigation was conducted. It revealed that appellant was doing fabrication of boiler components as job work to BHEL, Trichy during the year 2004 onwards. The above conversion work was undertaken in terms of Notification No.214/86-CE dated 25.03.1986 whereby BHEL undertook to pay Central Excise duty on all the finished products. The inputs were supplied by BHEL. On completion of job work at the factory premises of the assessee, the final products viz. boiler components were desp....

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....It is submitted that the show cause notice alleges that the appellant has not discharged the excise duty in respect of the scrap generated during the manufacturing of wind mill towers for M/s.Sulzon Towers and Structures Ltd. and for the works undertaken for M/s.Thermax. Though in para 4.2A of the order passed by the appellate authority, there is discussion and finding with regard to job work done by appellants for BHEL, there is no issue raised in the SCN with regard to BHEL and there is no demand confirmed with regard to works undertaken for BHEL. Appellate authority has therefore rendered a finding with regard to BHEL also, which is a mistake. 6. Ld. Counsel submitted that during the manufacture of excisable products the scrap are gener....

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....e are not exigible to excise duty. 7. Ld. Counsel brought to the notice that the appellate Tribunal in the case of Varun Beverages Limited Vs CCE & ST, Jaipur - 2018 (4) TMI 823-CESTAT NEW DELHI has followed the said decision. The Larger Bench of Tribunal in the case of Ricela Health Foods Ltd. Vs CCE Chandigarh, Allahabad - 2018 (361) ELT 1049 (Tri.-LB) had occasion to analyse the very same issue as to whether waste in the nature of fatty acids, wax and gum arising in the course of manufacture of refined vegetable oil are liable to excise duty. The Tribunal relied upon the decision of the Apex Court (supra). The Tribunal had observed that incidentally the products are nothing but waste arising during the course of refining of rice bran oi....