2024 (3) TMI 849

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.... duty. 2. The facts of the present case are M/s Sheel Chand Agro Oils Pvt. Ltd, the Appellant, are manufacturer of Refined Vegetable Oils/Vanaspati (falling under Chapter 15 of the Central Excise Tariff). The final manufactured products, namely Refined Palm Oil and other vegetable Oils, were fully exempt from duty during the period under reference. 3. That while manufacturing the final product viz. refined oil, the crude Vegetable oil is subjected to certain process to remove impurities, as a result of which some waste materials like - gum, wax and fatty acid emerged. The Appellant cleared said waste materials availing Central Excise duty exemption in terms of Notification No.89/1995. 4. That on the basis of audit conducted by the ....

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....emption under Notification No.89/1995-C.C. dated 18.05.1995 and would be exempt from duty." 7. Learned Counsel for the appellant and the learned Authorised Representative for the Department agrees that the aforesaid issue is covered by the decision in M/s. Ricela Health Foods Ltd. Vs. CCE, Chandigarh - 2018 (361) ELT 1049 (Tribunal-Larger Bench). The observations of the Larger Bench are quoted 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 such summary presumption. Admittedly, in chemical and metallurgical industry when the raw materials are processed with an intended purpose of....

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.... 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 above, these cannot be considered as anything other than waste and as such will be covered by the exemption Notification No. 89/95-C.E. Thi....