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2013 (11) TMI 991 - AT - Central Excise100% EOU - Egg Shell Powder Manufactured Item or not – Benefit of exemption of Notification No.23/2003 – Held that:- 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 – thus, the view that Egg Shell Powder cannot be considered as a manufactured product - Following Collector of Central Excise, Patna Vs Tata Iron and Steel Co. Ltd. [2004 (2) TMI 68 - SUPREME COURT OF INDIA ] - The appellant has a strong case in view of the exemption at S. No. 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, duty need not be paid on such product - Egg Shell powder is almost similar to oil cake left behind when vegetable oil is extracted from oil seeds - Oil cakes also are used in making animal feed - For oil cake exemption is provided at S. No. 20 of the notification - Similar exemption can be seen for tea waste and coffee waste at S. No. 19 of the same notification –there is no reason to deny the benefit of this notification to Egg Shell Powder –Decided in favour of Assessee.
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