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TMI Blog2015 (9) TMI 1024X X X X Extracts X X X X X X X X Extracts X X X X ..... . In course of refining of crude vegetable oil, fatty acids, wax and gum emerge as by-products. The refined vegetable oil did not attract any duty, as during the period of dispute, either the refined vegetable oils were fully exempt from duty under Notification No. 3/06-CE dated 01/3/06 or the tariff rate itself was nil. The exemption Notification No. 89/95-CE dated 18/5/95 exempts the "waste, parings and scrap" arising in course of manufacture of exempted goods and falling within the schedule to the Central Excise Tariff Act, from the whole of the duty of excise on leviable thereon as is specified in this schedule. This exemption is subject to condition that this exemption would not apply to waste, parings and scraps cleared from a factory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2011 were adjudicated by the Commissioner vide order-in-original dated 14/12/11 by which he confirmed the duty demands totalling Rs. 13,21,83,197/- alongwith interest on it under Section 11AB/11AA of the Central Excise Act and beside this, imposed penalty of equal amount on them under Section 11AC. In case of M/s JVL Agro Industrial Ltd., the Commissioner vide order-in-original dated 07/8/12 confirmed duty demand of Rs. 1,53,63,541/- against them for the period from April 2011 to September 2011 alongwith interest on it under Section 11AB/ 11AA and beside this, imposed penalty of equal amount on them under Section 11 AC. Against these orders of the Commissioner, these appeals have been filed. 2. Heard both the sides. 3. Shri B.L. Narasirn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. A.G. Fats Ltd. (supra) that waste under this notification refers to the goods of no value or little value cannot be preferred, as the goods of no value would not command any duty at ail in the first place and this would amount to adding words to the notification where they do not exist. Shri Narasimhan also pleaded that prior to the Tribunal's judgment in the case of CCE, Jalandhar vs. A.G. Fats Ltd, (supra) the another Bench of the Tribunal in the case of CCE, Hyderabad vs, Priyanka Refineries Ltd. reported in 2010 (249) E.L.T. 70 (Tri. - Bang.) has also taken the view that the fatty acids, wax and gum emerging as by-product in course of refined vegetable oil by processing of crude oil are in the nature of waste eligible for exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inding precedent and therefore, the Tribunal was not correct in taking a different view in the case of Maheshwari Solvent Extraction Ltd. vs. CCE, Nagpur (supra) . He, therefore, pleaded that there is no infirmity in the impugned order. However, he has no objection if the matter referred to Larger Bench. 5. We have considered the submissions from both the sides and perused the records. 6. The appellant manufacture refined vegetable oil by processing of crude oil and in course of refining of crude vegetable oils, Fatty acids, wax and gums emerge as unavoidable by-products. During the period of dispute, the refined vegetable oil was either fully exempt from duty under same exemption Notification or was chargeable to nil rate of duty in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Tariff, is not correct/ as a by-product is an unavoidable product obtained in course of manufacture of a particular product and waste is only that by-product which is in the nature of refuge and is fit to be discarded. Moreover when the Tribunal's judgment in the case of CCE, Jalandhar vs. A.G. Fats Ltd. (supra) which had considered the earlier contrary judgment in the case of CCE, Hyderabad vs. Priyanka Refineries Ltd. (supra) has been affirmed by the Apex court by dismissal of civil appeal, even if the civil appeal has been dismissed without giving any reasons, the Apex Court's order in view of its judgments in the cases of Kunhyammed vs. State of Kerala reported in 2001 (129) E.L.T. 11 (S.C.) and Waman Rao vs. Union of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Notification No. 89/95-CE exempting the waste arising as by-product from excise duty, the courts and Tribunals are not bound to construe the word 'waste' as including even marketable by-products also, as the Government by issuing an exemption Notification under Section 5A (1) of the Central Excise Act, 1944 in respect of some waste, cannot make the non-excisable product into an excisable product. While construing such exemption notification the principle of avoiding redundancy while interpreting a statutory provision would not apply. Therefore, in the Notification No. 89/95-CE, the word 'waste' would mean only those by-products which are in the nature of refuge, are of no or little commercial value and which are generally d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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