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TMI Blog2014 (9) TMI 527X X X X Extracts X X X X X X X X Extracts X X X X ..... ils from various mills and refining the same in their factory and during such process, it obtained refined vegetable oil as the main product and soap stock as a by-product, which was further converted as acid oil and soap sludge and cleared to various soap manufacturers and that they have not paid excise duty on the by-products cleared from their factory. The appellant is a registered Small Scale Industry and the status of the appellant as small scale industry was not disputed by the Revenue. 3. The Officers of the Department visited the factory and pursuant to which, a show cause notice was issued demanding payment of duty to the tune of Rs. 23,81,941/- with interest and also made proposal to impose penalty. 4. The appellant su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cter and it cannot be classified under Chapter heading 1515 of the Central Excise Tariff Act, 1985. Regarding the plea of limitation, the First Appellate Authority concurred with the Original Authority stating that the facts came to light only on the search operation conducted in the assessee's premises. Aggrieved by the said order, the appellant filed appeal before the Customs, Excise and Service Tax Appellate Tribunal and also sought for waiver of pre-deposit and stay of the operation of the order passed by the Original Authority as confirmed by the Adjudicating Authority. 6. Before the CESTAT, in order to establish a prima facie case, the assessee contended that soap stock is a waste product and therefore, exemption is available un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p;We have heard Mr. M.N. Bharathi, learned counsel appearing for the assessee and Mr. V. Sundareswaran, learned Standing Counsel appearing for the Revenue. 10. With regard to the nature of manufacturing activity carried on by the appellant and the process viz., refining process, they get refined vegetable oil as the main product and soap stock as a by-product, which was further converted as acid oil and soap sludge and whether these products would clarify as "waste" and entitled for exemption under Notification No. 89/95-C.E. are questions of fact, which the appellant/assessee has to establish before the CESTAT and the CESTAT, would go into the said aspects and render a final finding. Hence, at this stage, all that is required to be s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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