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2023 (9) TMI 714 - AT - Central ExciseExemption from Excise duty on Sludge Oil (Soap Stock) under N/N. 89/95-CE dated 18.09.1995 or not - emerging during the manufacture of refined coconut oil - clearance of refined coconut oil availing full exemption under Notification No. 4/2005-CE dated 01.03.2005 - HELD THAT - The very same issue was considered by the Tribunal in the case of M/S RICELA HEALTH FOODS LTD., M/S J.V.L. AGRO INDUSTRIAL LTD., M/S KISSAN FATS LIMITED VERSUS CCE, CHANDIGARH, ALLAHABAD 2018 (2) TMI 1395 - CESTAT NEW DELHI where it was held that Noting that the reference is to decide whether these are to be treated as waste for the purpose of exemption Notification No. 89/95-C.E. we note though the excisability of the product itself is seriously in dispute as per the opinion expressed by us, as above, these cannot be considered as anything other than waste and as such will be covered by the exemption Notification No. 89/95-C.E. The said decision has been upheld by the Hon'ble Supreme Court in the case COMMISSIONER OF CENTRAL EXCISE, CHANDIGARH-I VERSUS MARICO LTD. 2022 (10) TMI 1174 - SC ORDER . The Tribunal in the case of M/S. SSD OIL MILLS COMPANY LTD. VERSUS COMMISSIONER OF GST CENTRAL EXCISE CHENNAI IV 2019 (11) TMI 241 - CESTAT CHENNAI had followed the decision of the Larger Bench and set aside the demands. Thus, the demand cannot sustain - impugned orders are set aside - appeal allowed.
Issues involved:
The issue involved in the judgment is whether the Sludge Oil (Soap Stock) arising during the manufacture of refined coconut oil is eligible for exemption under Notification No. 89/95-CE dated 18.09.1995. Comprehensive Details: The appellants were engaged in refining crude coconut oil and clearing refined coconut oil availing full exemption under Notification No. 4/2005-CE dated 01.03.2005. They were also clearing Sludge Oil, a by-product arising in the course of refining. The Department contended that duty should be paid on the Sludge Oil. After due process, the original authority confirmed the duty demand, interest, and penalty. The appellant appealed before the Commissioner (Appeals) who upheld the decision, leading to the current appeals. The Ld. Consultant argued that as per Notification No. 89/95-CE, waste products arising during the manufacture of a final product exempted from duty are also eligible for exemption. Citing precedents, the Consultant asserted that the Sludge Oil should be exempt from duty. The Ld. Consultant also highlighted that for an earlier period, proceedings against the appellant were dropped, and no appeal was filed by the Department. The Ld. Consultant prayed for the appeals to be allowed. The Ld. Authorised Representative supported the findings of the impugned order. The main issue for consideration was whether the Sludge Oil emerging during the manufacture of refined coconut oil is eligible for exemption under Notification No. 89/95-CE. The Tribunal's decision in a similar case was referenced, emphasizing that products arising as waste during manufacturing processes should be considered for exemption. The Tribunal's decision was upheld by the Supreme Court in a related case. Considering the same facts and issues, the demand for duty on Sludge Oil was deemed unsustainable, and the appeals were allowed with consequential relief. (Order dictated in court)
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