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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 ..... It is found that fatty acid is not manufactured as excisable goods from crude palm oil, rather it is waste arising in the course of manufacture. The Ld.Commissioner has erred in finding that they are not eligible for the benefit of Notification No.89/1995-CE because they are manufacturing tin containers/HDPE jars as submitted by the Ld. Counsel for the Appellants. The Ld. Commissioner has not appreciated the fact that the tin containers/HDPE jars manufactured are also eligible for exemption under Notification No.10/1996 as submitted by the Appellant. The Larger Bench of the Tribunal 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 - CE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufactured 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 under Sl.No.1 of the said table. The Appellant was eligible for benefits of exemption under Notification No.89/1995-CE dated 18.05.1995. In the Show Cause Notice dated 07.05.2013 issued to the Appellant, the Commissioner of Central Excise & Service Tax, Patna had alleged that by wron ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble 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 benefit of exemption Notification No.89/1995-CE is to be denied. It is the case of Appellants that the HDPE jars/empty tins manufactured are also exempted goods in terms of Notification No.10/1996-CE dated 23.07.1996. 4. Shri S.S.Chattopadhyay, Ld.Authorized Representative for the depa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, 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 fetch cannot be a determinative factor to decide whether the same is a manufactured final product/byproduct 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). Whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt/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 the above discussions, the impugned orders cannot be sustained and are therefore set aside. Accordingly, the Appeals, filed by the Appellants are allowed with consequential relief, as per law.
(Order pronounced in the open court on 04 May 2022.) X X X X Extracts X X X X X X X X Extracts X X X X
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