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TMI Blog2022 (5) TMI 252X X X X Extracts X X X X X X X X Extracts X X X X ..... l and Vanaspati ghee classifiable under CETH 15 16 2029. That, in order to make the final product marketable and to facilitate handling, the Appellant had in-house facility for manufacture of empty tins and HDPE jars for packing of its final product. The empty tins and HDPE jars manufactured in-house were captively consumed/used in the packing of its final products. The Appellant had been availing exemption from excise duty thereof under Notification No.10/96-CE dated 23.07.1996, which extends exemption to all goods if the same are consumed within the factory of their production in the manufacture of goods specified in the table wherein all goods classifiable under Chapter 15 (except 1571 10 22, 1520 00 00, 1521 and 1522) were specified und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le Supreme Court in the case of Commissioner of Central Excise Vs. Indian Aluminium Co. Ltd. [2006 (203) E.L.T. 3 (SC)] and held that these incidental products are nothing, but wastes arising during the course of refining of palm oil and cannot be considered as manufactured excisable goods and that these wastes will also be covered by the exemption Notification No.89/1995-CE. It is further submitted that 'fatty acid' is not manufactured as excisable goods from 'crude palm oil', rather it is the waste arising in the course of manufacture of vanaspati ghee/refined palm oil. He further submitted that the Adjudicating authority has mis-applied himself by stating that the HDPE jars/empty tins manufactured are excisable goods and hence the benefi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icant 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 products by a chemical reaction, refining, melting etc. multiple products will result. These products either emerged in the final stage or any of the intermediating stages also. The point for consideration is whether these are to be considered as manufactured goods for excise levy based on the statutory definition for manufacture or should be considered as manufactured goods based on the likely value they may command while selling. We are clear that the value that a product may or may not fe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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-C.E. This has been pleaded as a alternate argument by the appellant/assessee also." 7. We find that the instant case is squarely covered by the above cited decision of the Larger Bench. We hold that the Appellants are entitled to exemption contained in Notification No.89/1995-CE on the products which arise incidentally to the manufacture of vegetable oils. We find that the impugned order misplaced itself and the findings vis-àvis tin containers/HDPE jars manufactured and captively consumed in the factory. 8. In view of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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