2003 (9) TMI 491 - AT - Central Excise

Summary

Issues:
- Whether the benefit of Notification No. 8/97-C.E., dated 1-3-97 as amended, is available for waste in the form of bones obtained during the process of manufacturing boneless meat.

Analysis:
- The appeal involved the question of whether the benefit of a specific notification was applicable to waste in the form of bones generated during the manufacturing process of boneless meat by a 100% Export Oriented Unit (EOU). The Additional Commissioner initially dropped proceedings demanding duty under a show cause notice, but the Commissioner (Appeals) overturned this decision after an appeal by the Department, citing an amendment to the notification. The appellant argued that a previous decision by the Appellate Tribunal in a similar case supported their position, emphasizing that waste, not being a finished product, should be exempt from duty under the notification.

- The Tribunal examined the submissions and referred to a previous case where the benefit of the same notification was denied for a by-product, emphasizing that the proviso to the notification does not apply to waste that is not a finished product. The Tribunal highlighted that the waste material in question was merely separated during the manufacturing process and sold as a different product, similar to the situation in the previous case. The Tribunal agreed that the waste material did not qualify as a finished product and upheld the decision to reject the appeal filed by the Revenue in the previous case.

- Applying the reasoning from the previous case to the current situation, the Tribunal concluded that bones obtained as waste during the production of boneless meat could not be considered a finished product. Therefore, in line with the decision in the previous case, the Tribunal set aside the Commissioner (Appeals) order and allowed the appeal, ruling in favor of the appellant.

This detailed analysis of the judgment provides a comprehensive overview of the issues involved and the Tribunal's reasoning in reaching its decision regarding the benefit of the notification for waste generated during the manufacturing process.