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TMI Blog2019 (7) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... CESTAT NEW DELHI] and it has been held that these products are not intentionally manufactured but only arise during the process of refining of crude vegetable oil and therefore should be considered as waste and they are entitled to the benefit of exemption N/N. 89/1995-CE. Demand not sustainable - appeal allowed - decided in favor of appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise Tariff. The show cause notice was issued on 01.06.2015 covering the period May, 2014 to July, 2014 demanding Central Excise duty of ₹ 4,36,550/- on these products under Sec.11A of the Central Excise Act along with interest under Sec.11AA. It was also proposed to impose a penalty upon them under Rule 25 of Central Excise Rules, 2002. After following due process, the lower authority confirmed the demand as proposed along with interest and imposed a penalty of equal amount under Rule 25 of Central Excise Rules, 2002. 4. Aggrieved, the appellant appealed before the first appellate authority who set aside the penalty imposed under Rule 25 but confirmed the demand raised. Hence, this appeal. 5. Learned counsel for the appellant su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufactured final product/by-product or a waste/refuse arising during the course of manufacture of final products. This much is clear from the ratio of the Apex Court decision in Indian Aluminium Co. (supra). While no general guidelines can be laid down to decide when a product will be treated as a waste or a by-product, in the present set of facts the products under consideration are clearly not in the nature of by-products emerging during the course of manufacture. The process of manufacturing refined vegetable oil is essentially by removing the unwanted materials that were present in the crude vegetable oil so that a refined vegetable oil can be obtained. In this process of refining, the unwanted materials are removed. Hence, we are of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd asserts that these products are in the nature of by-products and not in the nature of waste and scrap and therefore are not entitled to the benefit of exemption notification 89/1995-CE. 8. We have considered the arguments on both sides and find that the issue in hand is identical to the issue before the Larger Bench of the Tribunal in the case of Ricela Health Foods Ltd (supra). The short point to be decided is whether the fatty acids/ wax/ gums, etc., which arise while crude vegetable oil is refined should be considered as waste or as by-product. If these are considered as waste, they are covered by exemption notification 89/1995-CE. If, on the other hand, these are considered as by-products, as asserted by the department, they are no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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