2015 (10) TMI 1969 - AT - Central Excise

Benefit of Notification No. 85/95-C.E., dated 18-5-1995 - Held that - Supreme Court in the case of Markfed Vanaspati & Allied Indus. (2003 (4) TMI 98 - SUPREME COURT OF INDIA) has held that spent earth remained earth even after the processing and therefore no duty is leviable on spent earth. It is also seen that in the case of Maheshwari Solvent Extraction Ltd. (2013 (7) TMI 51 - CESTAT MUMBAI), the Hon ble CESTAT held that impurities consisting of gums, waxes and fatty acids are eligible for the benefit of Notification No. 89/95-CE. Similarly, in the case of CCE, Hyderabad v. Shree Siddhi Vinayaka Agro Extractions P. Ltd. - 2009 (8) TMI 1138 - CESTAT BANGALORE . the Hon ble CESTAT held that soap stock and wax emerging during process of manufacture of vegetable refined oil is waste and not a by-product and is therefore, eligible for the benefit of Notification No. 89/95. - issue is no longer res integra - Decided in favour of assessee.

Summary

Issues:
1. Eligibility of Gad, Sludge, Acid Oil & Spent Earth for Notification No. 85/95-C.E.

Analysis:
The appellants filed a stay application and appeal against Order-in-Appeal No. 92(VC)CE/JPR-I/2012, which confirmed a demand of Rs. 20,71,909/- along with interest and penalty. The adjudicating authority held that Gad, Sludge, Acid Oil & Spent Earth obtained during the refining of vegetable oil are not eligible for the benefit of Notification No. 85/95-C.E., dated 18-5-1995.

The appellants argued that the issue is covered by the judgment of the Hon'ble CESTAT in the case of Maheshwari Solvent Extraction Ltd. v. CCE, Nagpur - 2014 (299) E.L.T. 116 (Tri.-Mumbai) and the Supreme Court's judgment in CCE, Chandigarh-I v. Markfed Vanaspati & Allied Indus. - 2003 (153) E.L.T. 491 (S.C.). With the consent of the learned AR, the appeal was decided without the requirement of pre-deposit.

Upon considering the facts and contentions, it was noted that the Supreme Court in the case of Markfed Vanaspati & Allied Indus. held that spent earth remains earth even after processing, making it non-leviable for duty. Additionally, the CESTAT in the case of Maheshwari Solvent Extraction Ltd. and CCE, Hyderabad v. Shree Siddhi Vinayaka Agro Extractions P. Ltd. established that impurities like gums, waxes, fatty acids, soap stock, and wax emerging during the refining process of vegetable oil are eligible for the benefit of Notification No. 89/95-CE.

Consequently, the issue was deemed settled by previous judicial pronouncements, leading to the allowance of the appeal and setting aside of the impugned order.