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2013 (12) TMI 570 - AT - Central ExciseDenial of exemption under Notification No. 89/95 CE - By product emerged out of manufacture process Revenue was of the view that Rice Bran Fatty Acid, Rice Bran Wax and Rice Bran Gums are not waste Waiver of Pre-deposit Held that - The Board is considering a plea of the Association against recovery of duty on items such as gums, waxes, soap stocks and fatty acids arising during the course of refining of crude vegetable oils - the appellant and other similarly situated manufacturers had represented to the Board for issue a notification under Section 11C in respect of by-products emerging during the course of manufacture of refined vegetable oils - A Circular issued by the Board way back in 2002 is against coercive recovery of duties on goods in respect of which survey has been floated. If that be the case, no pre-deposit should be ordered under Section 35F of the Central Excise Act which is a provision to safeguard the revenue during the pendency of the appeal in the Tribunal - the survey is going on and, in future, the Board may or may not come out with Section 11C notification - during the intervening period, there shall be no recovery Thus, there will be no pre-deposit stay granted.
Issues:
1. Waiver and stay application regarding demand on 'Rice Bran Fatty Acid', 'Rice Bran Wax', and 'Rice Bran Gums'. 2. Denial of exemption under Notification No. 89/95 CE. 3. Interpretation of items as waste or manufactured products. 4. Reference to previous cases and Tribunal decisions. 5. Representation to CBEC for notification under Section 11C. 6. Circulars issued by the Board regarding recovery of duties. 7. Applicability of Section 35F of the Central Excise Act. Analysis: 1. The appellant filed an application seeking waiver and stay for the demand amounting to Rs. 20,38,015 on 'Rice Bran Fatty Acid', 'Rice Bran Wax', and 'Rice Bran Gums' arising during the manufacture of 'Refined Rice Bran Oil'. The demand was based on the denial of exemption under Notification No. 89/95 CE as these items were considered not to be waste. The Bench noted a previous case where similar relief was granted to the same assessee. The Superintendent (AR) opposed the plea, citing a Tribunal decision and a Stay Order from a Coordinate Bench regarding similar items emerging during the manufacture of refined vegetable oil. 2. The appellant referred to a representation submitted by the Solvent Extractors Association of India to the CBEC for issuing a notification under Section 11C of the Central Excise Act. The Board was considering the plea against the recovery of duty on items like gums, waxes, soap stocks, and fatty acids arising during the refining of crude vegetable oils. A survey was initiated by the Board to assess the practice of assessing such goods. The appellant also mentioned a Circular issued by the Board in 2002 advising against coercive recovery of duties during such surveys. 3. It was acknowledged that the appellant and other manufacturers had requested the Board for a notification under Section 11C for the by-products emerging during the manufacture of refined vegetable oils. The Board had initiated a survey in response to the representation. The Circular issued in 2002 prohibited coercive recovery of duties on goods subject to such surveys. Given the ongoing survey and the possibility of a Section 11C notification in the future, no pre-deposit was deemed necessary under Section 35F of the Central Excise Act to safeguard revenue during the appeal process. The stay application was allowed, considering the Board's stance on recovery during surveys under Section 11C.
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