2017 (5) TMI 1449

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..... facturing process as in the case of bottom sediments called tank sledge - appeal allowed - decided in favor of appellant.
Shri B. Ravichandran, Member (Technical) Shri Sachin R. Jain, C.A. - for the appellant. Shri K. Poddar, Authorized Representative (DR) - for the Respondent. Per. B. Ravichandran The appeal is against order dated 14/09/2011 of Commissioner (Appeals), Jaipur - I. The appellants are engaged in extraction of Mustard Oil from cake and Soya Oil from Soya seeds. During the course of the process undertaken by the appellant various by products like spent earth, recovered oil, tank sludge/gum, acid oil also emerged. The appellants final products namely refined oil/mustard oil are exempt from payment of Central Excise duty. .....

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..... relied on certain decided cases of the Tribunal to support his submission. 3. The learned AR submitted that the products in question, are emerging during the course of manufacture in the appellants factory. They do have marketability and fetch the appellant, consideration upon sale. All the requirements of an excisable product is fulfilled. The exemption claimed by the appellant is applicable only to waste and not to by products. 4. I have heard both the sides and perused the appeal records. Regarding recovered oil, I find that the Commissioner (Appeals) held the same to be a fatty acid and relied on ratio applicable to such fatty acid while upholding the duty liability. The appellants pleaded that recovered oil cannot be equated to fatty .....

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..... ESTAT - BANG. The Tribunal in the final order 50299-50301 of 2017 dated 06/01/2017 in the case of Kirti Nutrients Limited and ors. vs. CCE & ST, Indore held that soya sledge emerging during the process of manufacture of refined soya oil is not liable to excise duty. Reference can also be made to decision in CCE, Indore vs. Ambika Refinery reported in 2013 (296) E.L.T. 249 (Tri. - Del.). 6. Considering the above discussion and analysis, I find that the two main products namely recovered oil and the tank sledge are not liable to Central Excise duty as they are either covered under exemption as waste product in terms of Notification 89/95CE or not arising out of manufacturing process as in the case of bottom sediments called tank sledge. In t .....

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