2018 (3) TMI 838 - AT - Central Excise

Demand of duty - products arising when crude vegetable oil into refined vegetable oils, like Gums/Soap Stock/Wax/muddy/Liquid Sludge/Palm Fatty Acid Distillate etc. - Held that - an identical issue in the case of M/s Ricela Health Foods Ltd., and Others 2018 (2) TMI 1395 - CESTAT NEW DELHI were before the Larger Bench of the Tribunal, where it was held that the appellants are eligible for exemption under N/N. 89/1995 CE dated 18.05.1995 - appeal allowed - decided in favor of appellant.

Summary

Issues:
- Appeal against Orders-in-Appeal regarding demand of duty on refined vegetable oils and by-products.
- Interpretation of Notification No. 89/1995 CE for exemption eligibility.
- Determination of whether by-products arising during refining process are excisable goods or waste for exemption purposes.

Analysis:
1. The appeal involved challenges against Orders-in-Appeal related to the demand of duty on products such as refined vegetable oils and by-products like gums, waxes, and fatty acids. The issue was found to be identical in multiple appeals, leading to a common disposal of all cases.

2. The core issue revolved around the interpretation of Notification No. 89/1995 CE for exemption eligibility. The appellants claimed exemption from Central Excise duty on the mentioned products. A crucial reference was made to a Larger Bench decision regarding a similar issue involving M/s Ricela Health Foods Ltd., where the Tribunal ruled in favor of the appellants' eligibility for exemption under the said notification.

3. The Tribunal analyzed the manufacturing process involved in converting crude vegetable oil into refined vegetable oils and the generation of by-products during this process. The Tribunal referred to the Larger Bench decision's ratio, emphasizing the distinction between manufactured goods, by-products, and waste arising during manufacturing. The Tribunal highlighted that the process aimed at obtaining refined vegetable oil by removing unwanted materials, indicating that the generated by-products were considered waste rather than excisable goods.

4. Based on the above analysis, the impugned orders were set aside, and the appeals were allowed with consequential reliefs, if any. The decision was made considering the nature of the products generated during the refining process and their classification as waste rather than excisable goods, aligning with the interpretation of the Apex Court's decision and the exemption under Notification No. 89/1995 CE.

5. The judgment was delivered by the Tribunal, comprising MR. M.V. RAVINDRAN, MEMBER (JUDICIAL) and R. MADHU MOHAN DAMODHAR, MEMBER (TECHNICAL), with the order pronounced in open court after hearing both sides and perusing the records thoroughly. The decision provided clarity on the applicability of the exemption notification and the classification of the products in question as waste rather than excisable goods.