TMI Blog2023 (8) TMI 1137X X X X Extracts X X X X X X X X Extracts X X X X ..... products are not intentionally manufactured but only arise during the process of refining of crude vegetable oil and therefore should be considered as waste and they are entitled to the benefit of exemption N/N. 89/1995-CE. The issue is no longer res-Integra as has been held that the spent earth arising out of processing of oil is not liable to duty in terms of Notification No. 89/95-C.E. dated 18-05-2019 - demand not sustainable - appeal allowed. - MR. RAMESH NAIR, MEMBER (JUDICIAL) AND MR. C L MAHAR, MEMBER (TECHNICAL) Shri S .J. Vyas, Advocate for the Appellant Shri, Ashok Thanvi, Superintendent (AR), for the Respondent ORDER The issue involved in the present case is that whether the spent earth arising in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We find that the very same issue has been considered by this tribunal in the case of M/s. PRIYANKA REFINERIES PVT LTD UNIT II (supra) wherein, the tribunal has passed the following order:- 8. We have considered the arguments on both sides and find that the issue in hand is identical to the issue before the Larger Bench of the Tribunal in the case of Ricela Health Foods Ltd (supra). The short point to be decided is whether the fatty acids/ wax/ gums, etc., which arise while crude vegetable oil is refined should be considered as waste or as by- product. If these are considered as waste, they are covered by exemption notification 89/1995-CE. If, on the other hand, these are considered as by-products, as asserted by the department, they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tself contends that wax, fatty acid and gums are waste arising during the course of refining of vegetable oil; (c) no reliance can be placed on the order of the Tribunal in A.G. Fats (supra) as the same is devoid of legal basis and is incorrect in law. The said decision departed from many rulings of the Tribunal earlier. The reference made by the Tribunal in A.G. Fats (supra) to the decision of CCE, Hyderabad vs. Priyanka Refineries Ltd. - 2010 (249) E.L.T. 70 (Tri. Bang.) is factually incorrect. The said decision of the Tribunal in Priyanka Refineries (supra) has been affirmed by the Apex court by dismissing the civil appeal Nos. 219-220 of 2010 filed by the Revenue reported in 2011 (274) E.L.T. A16 (S.C.). This was wrongly referred t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al importance. All products emerging during the course of main final products cannot be considered as waste, eligible for exemption under the said notification. 9. We have heard both the sides and perused the appeal record to examine the reference made by the Division Bench. Since the appellants submitted on the excisability itself the first point for decision is the excisability of the products, in question. The appellants strongly contended that even before examining the admissibility of exemption under Notification 89/1995-CE, the point to be decided is the excisability of the product, in question. It is the case of the appellant that if it can be established that these goods are not manufactured goods then the question of levy itse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... products arising out of a manufacturing process. The appellants are engaged in converting crude rice bran oil into refined rice bran oil. In effect the processes undertaken by them are towards this intended final product. For producing refined rice bran oll, the gums and waxes available in the crude rice bran oil are to be removed by deguming and de-waxing. Thereafter by a process of deacidification/ de- odourisation, by distillation the refined oil is obtained. In this final process fatty acid distillate (fatty acid with odour) is obtained as a waste. As can be seen the gums, waxes and fatty acid distillate are emerging due to removal/refining process of crude rice bran oil. As already noted the process is to obtain refined rice bran oil b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of manufacture. The process of manufacturing refined vegetable oil is essentially by removing the unwanted materials that were present in the crude vegetable oil so that a refined vegetable oil can be obtained. In this process of refining, the unwanted materials are removed. Hence, we are of the considered view that the removal of unwanted materials resulting in products like gums, waxes and fatty acid with odour cannot be called as a process of manufacture of these gums, waxes and fatty acid with odour. The process of manufacture is for refined rice bran oil. As such, we note that these Incidental products are nothing but waste arising during course of refining of rice bran oil and applying the ratio of Apex court, as discussed above, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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