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2024 (1) TMI 1211 - AT - Central ExciseExcisable goods or not - Soap Stock arising during the manufacture of groundnut refined oil - period April 2006 to February 2015 - benefit of the Notification No. 89/95 CE dated 18.05.1995 - HELD THAT:- The Larger Bench of this 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 - CESTAT NEW DELHI] had considered the issue as to whether the fatty acids, Waxes and gum arising in the manufacture of refined vegetable oil are to be treated as ‘WASTE’ for the purpose of exemption under Notification No. 89/95 CE or otherwise. The Larger Bench held that it is clear that the value that the product may or may not fetch cannot be a determinative factor to decide whether the same as manufactured final product/byproduct or a waste/refuse arising during the course of manufacture of final products. Relying on the judgement of the Apex Court in COMMISSIONER OF CENTRAL EXCISE VERSUS INDIAN ALUMINIUM CO. LTD. [2006 (9) TMI 6 - SUPREME COURT], the larger bench held that removal of unwanted material resulting in products like gum, wax, and fatty acid cannot be called as process of manufacture of such items. As such, incidental products are nothing but waste arising during the course of refining of rice bran oil and on applying the ratio of the Apex Court, this cannot be considered as manufactured excisable goods. The impugned order set aside - appeal allowed.
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