2017 (12) TMI 276

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..... he same would not be eligible for exemption under N/N. 89/95-C.E - benefit not allowed - appeal dismissed - decided against appellant.
Mr. Ramesh Nair, Member(Judicial) And Mr. Raju, Member (Technical) None for the Appellants Shri. Sanajay Hasija, Superintendent (A.R.) for the Respondent ORDER Per: Raju The appeal filed by the appellant Shiv Shakti Extraction P. Ltd against the confirmation of demand of duty on Soapstock cleared by them. 2. None appeared on behalf of the appellant however it is seen that the issue is squarely covered by the decision of this Tribunal in case of Commissioner of Central Excise, Jai Andhar Vs. A.G. Fats Ltd [2012(277) ELT 96 (Tr. Del) which has been upheld by the Hon'ble Supreme Court reported as [201 .....

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..... -product which is of no value or very low value. Larger Bench of the Tribunal in the case of Markfed Vanaspati & Allied Indus v. CCE, Chandigarh reported in 2000 (116) E.L.T. 204 (Tribunal) after observing that by-product means something of value produced in making the main product or a substance obtained in course of a specific process but not a primary object, has held that the spent earth arising in course of refining of oil, being of no value, is not a new product or a by-product. Though the Tribunal in the case of CCE, Hyderabad v. Priyanka Refineries Ltd. (supra) has held that soap stock arising in course of refining of oil is waste, no reasons have been given for arriving at this conclusion. In this order, the observations of the Tri .....

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..... s an unintended product arising in course of manufacture of an intended final product. The by-product would be waste only if it is of no value or negligible value something which the manufacture would want to get rid of. No evidence has been produced by the Assessee that the products, in question, are of no value or negligible value, which have to be got rid of. On the contrary, the records indicate that the price of fatty acids, soap stock, waxes and gums is around ₹ 23,000/- per M.T., ₹ 11,000/- to ₹ 13,500/- per M.T., ₹ 10,000/- per M.T. and ₹ 1700 to ₹ 1800 per M.T. respectively. Since the products, in question, have not been shown to be of no value or negligible value which have only to be discarded, .....

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