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2022 (5) TMI 252 - AT - Central ExciseWaste or not - benefit of N/N. 89/95-CE - fatty acids arising in course of manufacture of refined palm oil and Vanaspati ghee - HELD THAT:- The Appellants are engaged in the manufacture of vanaspati/refined palm oil. They are importing crude palm oil at nil rate of duty in terms of Sl.No.30-II(A) of Notification No.21/2002-CUS dated 01.03.2002 as amended by Notification No.42/2008-CUS dated 01.04.2008. It is found that ‘fatty acid’ is not manufactured as excisable goods from crude palm oil, rather it is waste arising in the course of manufacture. The Ld.Commissioner has erred in finding that they are not eligible for the benefit of Notification No.89/1995-CE because they are manufacturing tin containers/HDPE jars as submitted by the Ld. Counsel for the Appellants. The Ld. Commissioner has not appreciated the fact that the tin containers/HDPE jars manufactured are also eligible for exemption under Notification No.10/1996 as submitted by the Appellant. The Larger Bench of the Tribunal in the case of M/S RICELA HEALTH FOODS LTD., M/S J.V.L. AGRO INDUSTRIAL LTD., M/S KISSAN FATS LIMITED VERSUS CCE, CHANDIGARH, ALLAHABAD [2018 (2) TMI 1395 - CESTAT NEW DELHI] has held that Noting that the reference is to decide whether these are to be treated as waste for the purpose of exemption N/N. 89/95-CE we note though the excisability of the product itself is seriously in dispute as per the opinion expressed by us, as above, these cannot be considered as anything other than waste and as such will be covered by the exemption N/N. 89/95-CE. The Appellants are entitled to exemption contained in Notification No.89/1995-CE on the products which arise incidentally to the manufacture of vegetable oils - the impugned order misplaced itself and the findings vis-àvis tin containers/HDPE jars manufactured and captively consumed in the factory The impugned orders cannot be sustained and are therefore set aside - Appeal allowed - decided in favor of appellant.
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