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TMI Blog2018 (4) TMI 720X X X X Extracts X X X X X X X X Extracts X X X X ..... ods - whether the appellants/respondents manufacturing Refined Vegetable Oil which is exempted under Notification, whether they are entitled to exemption on the items being Fatty acids, Wax, Gums and Spent earth under N/N. 89/1995-CE dated 18.05.1995? Held that: - similar issue decided in the case of M/s Ricela Health Foods Ltd., M/s J.V.L. Agro Industrial Ltd., M/s Kissan Fats Limited Versus CCE, Chandigarh, Allahabad [2018 (2) TMI 1395 - CESTAT NEW DELHI], where it was held that the removal of unwanted materials resulting in products like gums, waxes and fatty acid with odour cannot be called as a process of manufacture of these gums, waxes and fatty acid with odour. These cannot be considered as anything other than waste and as such w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sides and perused the appeal record to examine the reference made by the Division Bench. Since the appellants submitted on the excisability itself the first point for decision is the excisability of the products, in question. The appellants strongly contended that even before examining the admissibility of exemption under Notification 89/1995-CE, the point to be decided is the excisability of the product, in question. It is the case of the appellant that if it can be established that these goods are not manufactured goods then the question of levy itself will not arise. It is contended that the product, in question, are unwanted/inevitable waste. The value realized by the appellants on such unintended waste by sale, itself is not a criteri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al process fatty acid distillate (fatty acid with odour) is obtained as a waste. As can be seen the gums, waxes and fatty acid distillate are emerging due to removal/refining process of crude rice bran oil. As already noted the process is to obtain refined rice bran oil by removing these unwanted products alongwith spent earth, which when present makes the oil as crude refined oil. 11. The thrust of the arguments by the Revenue is that when a product is capable of being sold for a significant consideration the same cannot be considered as waste. We are unable to accept such summary presumption. Admittedly, in chemical and metallurgical industry when the raw materials are processed with an intended purpose of manufacturing certain final ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, waxes and fatty acid with odour. The process of manufacture is for refined rice bran oil. As such, we note that these incidental products are nothing but waste arising during course of refining of rice bran oil and applying the ratio of Apex Court, as discussed above, these cannot be considered as manufactured excisable goods. Noting that the reference is to decide whether these are to be treated as waste for the purpose of exemption Notification 89/95-CE, we note though the excisability of the product itself is seriously in dispute as per the opinion expressed by us, as above, these cannot be considered as anything other than waste and as such will be covered by the exemption Notification No.89/95-CE. This has been pleaded as an alterna ..... X X X X Extracts X X X X X X X X Extracts X X X X
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