2018 (3) TMI 915 - AT - Central Excise

Classification of goods - refined oils - benefit of N/N. 89/95-CE dated 18.05.1995 - whether the respondents are entitled to avail benefit of exemption N/N. 89/95-CE dated 18.05.1995 or not for the goods/products emerges during the process of manufacture of refined oil by the respondent or not? - Held that - The said issue has been settled by the Larger Bench of this Tribunal in the case of Ricela Health Food Ltd. & Others 2018 (2) TMI 1395 - CESTAT NEW DELHI wherein it has been held that for the product emerges during the course of manufacture of refined oil are not excisable goods, and the respondent are entitled to avail the benefit of exemption N/N. 89/95-CE dated 18.05.1995 - the respondents are entitled to avail the benefit of exemption N/N. 89/95-CE dated 18.05.1995 - appeal dismissed - decided against Revenue.

Summary

Issues:
Classification of by-products under Central Excise Tariff Act, 1985; Entitlement to benefit of exemption Notification No. 89/95-CE dated 18.05.1995.

Analysis:
The case involves an appeal by the Revenue against orders passed by the Ld. Commissioner (A) regarding the classification and duty liability of certain by-products arising during the manufacture of refined oils. The primary issue revolves around whether these by-products are dutiable or exempt from duty under Notification No. 89/95-CE dated 18.05.1995. The Ld. Commissioner (A) had initially classified the goods under Chapter Heading 1515 and granted exemption under Notification No. 3/2006-CE dated 01.03.2006 in one appeal, while in another appeal, granted benefit of exemption Notification No. 89/95-CE dated 18.05.1995. The Revenue contended that the goods were not waste and thus dutiable, challenging the Ld. Commissioner's orders.

In the appeal, the Ld. AR for the appellant argued that the Ld. Commissioner (A) exceeded the scope of the show cause notices by classifying the goods under a different chapter heading and dropping the charges against the respondents. On the other hand, the Ld. Counsel for the respondents maintained that the only issue in the show cause notices was the entitlement to the benefit of exemption Notification No. 89/95-CE dated 18.05.1995, citing a precedent where it was held that such goods arising during the manufacture of refined oil are eligible for the said exemption.

After considering the submissions, the Tribunal noted that the central issue was whether the respondents were entitled to the benefit of exemption Notification No. 89/95-CE dated 18.05.1995 for the by-products generated during the manufacturing process of refined oil. Referring to a previous ruling by a Larger Bench in the case of Ricela Health Food Ltd. & Others, the Tribunal concluded that the by-products were not excisable goods and thus the respondents were entitled to the exemption. Consequently, the appeals filed by the Revenue were dismissed, affirming the entitlement of the respondents to the exemption under Notification No. 89/95-CE dated 18.05.1995.

In conclusion, the judgment clarifies the classification and duty liability of by-products arising during the manufacture of refined oils, emphasizing the entitlement to exemption under specific notifications. The decision aligns with precedent and settles the issue in favor of the respondents based on the interpretation of relevant legal provisions and past rulings.