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2009 (5) TMI 419 - AT - Central ExciseExemption- Notification No. 89/95-C.E.- The respondents are manufacturers of edible vegetable refined oil and vanaspathi falling under sub-heading Nos. 1508/1510/1512/1516 etc., of the Central Excise Tariff, the respondents procure crude vegetable oil from various sources and convert/process the: same into refined vegetable edible oils and vanaspathi. During the course of processing of crude vegetable oils into refined vegetable oils, “soap stocks” emerge as a by-product apart from sludge etc., From the manufacturing process of the refining of vegetable oils, it is inevitable that “soap stocks” emerge as a by-product, which is normally used in the manufacture of soap. The respondent cleared the by-product/soap stocks by paying the duty @ 16% adv., With effect from 1-3-2005, refined vegetable edible oils and vanaspathi were exempt by Notification No. 4/2005-C.E., dated 1-3-2005. The respondents discontinued filing the monthly statutory returns in form, ER 1 with the department and did not furnish the information about the excisable goods manufactured and cleared from. 03/2005. Hence, a show cause notice dated was issued for demand of duty of Rs. 17,83,576/- and for imposition of penalty and interest, The ‘Adjudication authority’ extended the benefit of notification No. 89/95 C.E. dated 18-5-1995 and dropped all other proceedings.”The Commissioner of Central Excise, Hyderabad reviewed the OIO and directed an appeal be filed before Commissioner (Appeals). The appeal was rejected by the Commissioner (Appeals). Held that- we find that the soap stock which arises/emerges during the refining of vegetable oil is a waste for the respondents, though the Revenue may call it as a by-product. Accordingly, on merits as well as on the law, the Revenue (Appeals) is devoid of merits and are liable to be rejected and we do so.
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