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2012 (10) TMI 942 - AT - Central ExciseDuty demand - Procurement and processing of sesame seeds indigenously first for removal of broken or undersized seeds and, thereafter, the good seeds are further processed for removal of their skin - rejected seeds and the skin of the seeds (chhilka) are cleared to DTA - Held that:- In this case there are two products which are being cleared by the appellant. First product is the rejected sesame seeds which are broken, or undersized seeds, which have been separated from the sesame seeds subjected by the appellant to the process of grading. In our view, the process of grading of seeds in which the broken, undersize or waste seeds get separated would not amount to manufacture and, as such, the reject seeds cannot be treated as excisable goods - As regards, the discarded skins of the seeds (chhilka), even though it may fetch some value, the same cannot be treated as excisable product, in view of the judgments of Apex Court in the case of Union of India v. Indian Aluminium Co. Ltd. reported in [1995 (4) TMI 62 - SUPREME COURT OF INDIA], Union of India v. Ahmedabad Electricity Co. Ltd. (2003 (10) TMI 47 - SUPREME COURT OF INDIA) and also a recent judgment of Hon’ble Allahabad High Court in the case of Balrampur Chini Mills Ltd. v. Union of India (2013 (1) TMI 525 - ALLAHABAD HIGH COURT). Therefore, the chhilka obtained in course of de-skinning of the sesame seeds is not an excisable product and its DTA clearances also would not attract any Central Excise duty - Decided in favour of assessee.
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