2023 (9) TMI 714 - CESTAT CHENNAI

Exemption from Excise duty on Sludge Oil (Soap Stock) under N/N. 89/95-CE dated 18.09.1995 or not - emerging during the manufacture of refined coconut oil - clearance of refined coconut oil availing full exemption under Notification No. 4/2005-CE dated 01.03.2005 - HELD THAT:- The very same issue was considered by 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] where it was held that Noting that the reference is to decide whether these are to be treated as waste for the purpose of exemption Notification No. 89/95-C.E. 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 Notification No. 89/95-C.E.

The said decision has been upheld by the Hon'ble Supreme Court in the case COMMISSIONER OF CENTRAL EXCISE, CHANDIGARH-I VERSUS MARICO LTD. [2022 (10) TMI 1174 - SC ORDER]. The Tribunal in the case of M/S. SSD OIL MILLS COMPANY LTD. VERSUS COMMISSIONER OF GST & CENTRAL EXCISE CHENNAI – IV [2019 (11) TMI 241 - CESTAT CHENNAI] had followed the decision of the Larger Bench and set aside the demands.

Thus, the demand cannot sustain - impugned orders are set aside - appeal allowed.