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TMI Blog2016 (9) TMI 1171X X X X Extracts X X X X X X X X Extracts X X X X ..... cks (iii) such treatments have adopted, so that product is rendered marketable to consumer. From the show cause notice and relied upon documents for issue of show cause notices, we do not find that Revenue could establish that the goods emerged after removal of impurities from waste oil have been marketed to consumer. In fact, there was not a single invoice raised to a consumer, establishing that the goods were marketable to consumer. All the invoices were for bulk packing and sold to industrial customers. Further, there was no evidence of labeling or re-labeling or for re-packing into retail packs. We, therefore, hold that all the show cause notices involved in the four appeals in hand lack, prima facie, evidence for leveling charges level ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... October), should not be demanded from them under Section 11A of Central Excise Act, 1944. The show cause notice also had a proposal for recovery of interest and imposition of penalty. The appellants, before the Original Authority, relied upon the decisions of Hon'ble CESTAT in the cases of M/s Mineral Oil Corporation Vs. Commr. of Central Excise, Kanpur: 1999 (114) E. L. T. 166 (Tribunal) and M/s Raj Petrochem Industries Vs Commr. of Central Excise Customs, Vadodara : 2001 (129) ELT 186 (Tri.-Mum.) wherein this Tribunal had held that refining of old and used oil did not amount to manufacture. Further, they contended that removing impurity does not change the composition and, therefore, it does not amount to manufacture. They have als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0th January, 2015, Original Authority on similar lines, confirmed the demand of Central Excise duty amounting to ₹ 2,23,55,726/- and imposed equal penalty, Original Authority also directed the appellants to pay interest. Through said order, personal penalty of ₹ 20 lakhs was imposed on Mr. Anant Bhargava, Director of appellants' company. Challenging the said Order-in-Original dated 20th January, 2015, appellants are before this Tribunal through appeal No.E/51763/2015 E/51764/2015. 4. The grounds of appeal, inter-alia, included that by the process of refining from the waste oil, no new product emerges the and therefore, and- activity does not amount to manufacture. They have also relied on the ruling by the Hon'ble S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued that in the show cause notice, it is not established that the processes adopted by them, renders the treated waste oil marketable to consumers. In fact, the treated oil was removed in packing of 210 liter drums and sold to industrial customers for further used and Revenue, could not show any evidence to establish that a single invoice involves sale of process of waste oil to consumers, who use it in place of fresh lubricating oil. He has argued that in view of the sale of the goods to industrial customers the ingredient of product becoming marketable to consumer has not been established in the show cause notice. Hence, the show cause notices are not sustainable. 6. The learned A.R. appearing for Revenue has taken us through Para 42 o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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