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TMI Blog2011 (3) TMI 684X X X X Extracts X X X X X X X X Extracts X X X X ..... f a product stands satisfied and hence the process amounts to manufacture within the meaning of the said term under Section 2F which includes incidental and supplementary processes. Since the fatty acid cannot be a waste, question of exemption available under Notification No. 89/95 does not arise - Stay granted partly. - E/3399/2010 - 346/2011-EX(PB) - Dated:- 4-3-2011 - Justice R.M.S. Khandeparkar, Shri Rakesh Kumar, JJ. REPRESENTED BY : Shri S.P. Obja, Advocate, for the Appellant. Shri I. Beg, DR, for the Respondent. [Order per : Justice R.M.S. Khandeparkar, President]. Heard learned advocate for the appellants and DR for the respondent. This is an application filed in appeal arising from order dated 30th July 2010 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ged essentially on four grounds; firstly, that the Chief Commissioner, Lucknow under letter dated 21st, December 2009 has accepted the contention of the appellants that the waste product emerging in the process of manufacture of vanaspati ghee would not attract any duty and, therefore, the authorities below could not have taken a different view and secondly the fatty acid is itself exempt from payment of duty being classifiable under Central Excise Tariff Heading 15.11 in terms of Notification No. 3/06-C.E., dated 1st March 2006, as amended. Thirdly, the method or process by which the fatty acid arises does not amount to manufacture under Section 2F of the Central Excise Act, 1944 and fourthly it is not liable to duty in view of exemption e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atty acid has been specifically excluded from Chapter 15 under note 1(e) and, therefore, question of granting benefit of Notification No. 3/2006 cannot arise. Fourthly, the method by which the fatty acid is produced cannot be said to be a waste, but has to be considered as by-product as undisputedly it does not retain original identity of the inputs which are used for manufacture of the final product besides that it has marketability. Being so, the dual test to consider the excisability of a product stands satisfied and hence the process amounts to manufacture within the meaning of the said term under Section 2F which includes incidental and supplementary processes. Since the fatty acid cannot be a waste, question of exemption available und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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