Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2013 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (9) TMI 821 - CESTAT NEW DELHIClassification of Goods - Activity Manufacture OR Not - Assesse were engaged in the manufacture of Refined Oil falling under chapter heading No.1503.00 of the Central Excise Tariff Act, 1985 –Whether the Soya Gum which was settled at the bottom of the storage tank along with some oil and the separation of that oil from the said sludge by the process of decantation/filteration so to recover some crude oil, which was sold by the assessee as recovered oil can be said to be the result of any manufacture or not - Held that:- It was seen that the assessee had categorical stand that such Soya Gum which was settled at the bottom of storage tank and was removed gently along with some oil cannot be held to be an excisable item emerged as a result of manufacturing process - We find that Commissioner (Appeals) had discussed the issue in detail and had rightly held that such Soya Gum and recovered oil cannot be held to be the goods emerging as a result of manufacture - Soya Gum and the other impurities were part and partial of the purchased crude oil - The same settle down during the storage of the crude oil in the storage tanks - The upper part of the crude oil was further taken up for refining of the same. What was left at the bottom of the storage tanks was the impurities which were already contained for the said crude oil - As such the impurities along with some oil, which settle down at the bottom of the tank were nothing but part of the crude oil itself - Similarly the separation of said crude oil from the sludge obtained by the process of filteration/decantation was again nothing but crude oil - The same was not refined by the assessee and was sold to the soap manufacturers etc. When the Soya Gum and the recovered oil were part of the crude oil, which was the starting raw material for the manufacture of refined oil, it cannot be said that the appellant have manufactured Soya Gum and recovered oil - The same one admittedly a part of the crude oil, which does not get converted into refined oil - A part of the crude oil had been used by the appellant for the manufacture of the refined oil and a part of the crude oil, which could not be used for the manufacture of refined oil, stands sold by them as Soya Gum and recovered oil - Accordingly we agree with the detailed findings of Commissioners (Appeals), wherein he had taken into account the explanatory note to Chapter 1507.00, the report of the Deputy Commissioner, as also the explanatory note of Chapter 15 – there was no infirmity in his views - the appeal filed by the revenue was rejected.
|