2025 (5) TMI 1904

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.... the facts of the case are that the Appellants are manufacturer of fuel oil and other oils falling under Chatper heading 27101950 of CETA, 1985. During the relevant period i.e. from May 2013 to July 2015, the appellants had received in their factory premises "WASTE OIL" falling under Chapter sub-heading 27109900 from ships and also they procure such oil from other local industries. The said waste oil was procured on payment of applicable customs and central excise duties as the case may be which contains water and other impurities. The appellants subject the said waste oil to several processes such as filtering, action of a Centrifuge, Distillation, Blending, etc. by which the oil attains purification and collected in the storage tank which....

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.... fuel oil with impurities which typically is used in ships; before usage of the oil in the ships a jet stream of water is passed through the fuel oil to obtain first grade fuel oil, the remaining fuel oil with certain impurities is washed away with the water. It is this fuel oil mixed with waste and some impurities that is procured by the appellant on payment of duty. The appellants recycles this waste fuel oil to reclaim fuel oil by various processes like centrifuging, vaccum heating etc. Therefore, it is a fact that the appellant receive fuel oil with impurities and what clears after purification/recycling fuel is oil only. No new product emerges. The very nature of its nominclature indicates that no new product can emerge because no dist....

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....n and the resultant oil is sold as pure fuel oil. It is the Revenue's allegation that when the waste oil is subjected to processes such as filtration, purification, distillation, etc., resulting into fuel oil which becomes usable, hence, a new product emerges with different characteristics and accordingly chargeable to excise duty. 8. The issue is no more res-integra and covered by a recent judgment of the Tribunal in the case of Alicid Organic Industries Ltd. V. CCE & ST, Ahmedabad-III 2023 (384) ELT 106 (CESTAT, Ahmedabad). 9. In the said case more or less in similar facts and circumstances where the assessees were engaged in recycling/refining of waste oil/sludge collected from the vessels arriving at the major ports Kandla, Mundra....