2000 (8) TMI 460 - AT - Central Excise

Summary

Issues:
1. Correct classification of Loose (Unbranded) Vanaspati, Panghat Bakery Vanaspati, and Roshni Vanaspati.
2. Availability of exemption for spent/waste nickel catalyst under Notification No. 29/88.

Issue 1: Classification of Vanaspati:
The appeal concerned the classification of Loose (Unbranded) Vanaspati, Panghat Bakery Vanaspati, and Roshni Vanaspati under CET sub-heading 1504.00 or 1508.90. The Revenue classified all three products under heading 1508.90 as bakery shortening. The Board's Circular clarified that chilling of vanaspati does not constitute "further preparations" to change the classification. The process of texturization through chilling was examined, concluding that it does not alter the chemical composition of the product. The products under Heading 1508.90 were deemed different from those under Heading 1504.00. The benefit of money credit under Notification 45/89-C.E. (NT) was analyzed, emphasizing the use of minor oils for hydrogenation. The circular clarified that hydrogenated vegetable oil, even after chilling, falls under sub-heading 1504.00, ensuring the availability of money credit.

Issue 2: Exemption for Spent/Waste Nickel Catalyst:
The Tribunal referred to its own previous order, stating that spent/waste nickel catalyst arising during the manufacture of vanaspati is not excisable. Consequently, the demand of duty on spent/waste nickel catalyst by denying the exemption under Notification No. 19/88 was set aside. The appeal was partly allowed based on this finding.

In conclusion, the Tribunal classified Loose (Unbranded) Vanaspati and Panghat Bakery Vanaspati under CET heading 1504.00 as per the circular, while Roshni Vanaspati was classified under CET sub-heading 1508.90 due to additional processes. Additionally, the exemption for spent/waste nickel catalyst was granted based on the Tribunal's previous ruling.