TMI Blog2013 (11) TMI 991X X X X Extracts X X X X X X X X Extracts X X X X ..... 21 of Notification No.23/2003, which exempts waste from food industries manufactured in 100% EOUs - 100% EOU is normally expected to export all its products - for some of the products of residual nature, like egg shell, there may not be an export market and EOUs will be forced to clear such waste into domestic tariff area. The exemption enables 100% EOU producing food products to dispose of waste products, if arising out of indigenous raw materials, without payment of any excise duty to Domestic Tariff Area - If the waste product is not excisable there is no need for the exemption - The notification goes one step further to make the liability clearer by providing that even if any waste product may be considered as manufactured product, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and albumin are removed for the manufacture of Whole Egg Powder, Egg Yolk Power and Egg Albumin Powder. Egg shells left behind are collected and subjected to the process of heating. When heated such shells lose the smell and the inner membrane gets removed. Then the shells are powdered and packed. According to Revenue these processes amount to manufacturing of a new product viz., Egg Shell Powder which is marketed for its specific use as calcium supplement in animal and poultry feed. The product was categorized by the assessee as waste and was sold to a firm which was engaged in the manufacture of Animal and Poultry Feeds. The buyer used it as a calcium supplement in such feeds. 3. Revenue was of the view that such processes undertake ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld by Apex Court as reported at 1998 (102) ELT A224(SC). He submits that the content of the product sold is the same as that in naturally occurring egg-shells and hence no manufacturing process is involved. 6. His second line of defense is that the appellant is eligible for exemption at S.No.21 under Notification No.23/2003-CE, dated 31.03.2003. The Notification is applicable for goods manufactured in a 100% EOU like that of the appellant and provides exemption to waste from food industries , falling under any Chapter of the Central Excise Tariff Act, subject to condition No.10 annexed to the Notification. Condition No. 10 is that the goods should be manufactured wholly from indigenous raw materials. He submits that the appellant satis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision of the Tribunal in the case of Lubrizol Advanced Materials India Pvt. Ltd. Vs Commissioner of Central Excise, Vadodara-I reported in 2013 (290) E.L.T.453 (Tri.-Ahmd.). In this case, the dispute was whether cassia meal , made from husk and germ cassia seeds, coming into existence during processing of cassia seeds into cassia gum, was excisable or not. Cassia meal is used as texturizing agent/gelling agent/ stabilizer in food for animal and human consumption. The Tribunal after detailed examination of the facts held that Cassia meal cannot be considered as a waste and is a manufactured item on which excise duty is payable. He submits that the case of Egg Shell Powder is on an identical footing compared to cassia meal and, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of aluminium sheets from aluminium oxide. 10. In the case of cassia meal examined by Tribunal in Lubrizol Advanced Materials India Pvt. Ltd we find from para 8 of the decision that the department had placed better evidence than in the present case to prove their contention that a manufacturing process was involved. In the case of Egg Shell Powder, the processes are minimal and are essentially of a nature required to dispose of the same rather than to do any value addition or change in character of naturally occurring egg shell. Therefore, we are of the view that Egg Shell Powder cannot be considered as a manufactured product. 11. Further, the appellant has a strong case in view of the exemption at S. No. 21 of Notification No.23/2003- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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