2017 (1) TMI 1398 - AT - Central Excise

Classification of goods - Soya Sludge - Revenue took a view that the product soya sludge is an excisable product and classified under 152200900 whereas assessee took the view that soya sludge is nothing but a waste product and is not excisable to duty - Held that - the item is not covered under Chapter 15.07 (presently it is Chapter Heading 15.22) under Central Excise Tariff. When it is so, the subject item is not excisable - appeal allowed - decided in favor of appellant.

Summary

Issues:
Levy of Central Excise duty on Soya Sludge

Analysis:
The judgment pertains to the levy of Central Excise duty on Soya Sludge, a product arising during the refining of crude Soya Oil. The appellants, engaged in the manufacture of Refined Soya Oil, contested the excisability of Soya Sludge. The Revenue classified Soya Sludge under a specific tariff heading and demanded excise duty.

The Advocate for the appellants argued that Soya Sludge is a waste product and not excisable to duty. He relied on a previous Tribunal decision (Commissioner of Central Excise, Indore vs. Ambika Refinery) where it was held that Soya Sludge is not excisable under the Central Excise Tariff. The Advocate prayed for the appeals to be allowed based on this precedent.

The Tribunal, in its decision, referenced the earlier ruling and concluded that Soya Sludge is not excisable. Citing consistency with the previous decision, the Tribunal allowed all three appeals with consequential relief, setting aside the impugned orders.

In summary, the judgment resolves the issue of excisability of Soya Sludge, affirming that it is not subject to Central Excise duty based on established legal precedent. The appellants' appeals were allowed, and the impugned orders were set aside, providing them with the relief sought.