2023 (12) TMI 1445 - AT - Central Excise

Eligibility for exemption under N/N. 89/95-CE dated 18.05.1995 - gums waxes and fatty acids generated during vegetable oil refining are excisable products or not - HELD THAT - As submitted by the learned Counsel for the appellants that the issue is no longer res integra; we find that Larger Bench of the Tribunal in the case of M/s Ricela 2018 (2) TMI 1395 - CESTAT NEW DELHI has discussed the issue at length and came to the conclusion that the wax gums and fatty acids emerging in the process of refining of vegetable oils cannot be considered anything other than waste and as such the exemption contained under the Notification No. 89/95-CE is available to the appellants. In view of the same the impugned orders are not sustainable and are liable be set aside. Appeal allowed.

Summary

The Appellate Tribunal (CESTAT Chandigarh) addressed appeals concerning whether gums, waxes, and fatty acids generated during vegetable oil refining are excisable products exempt under Notification No. 89/95-CE dated 18.05.1995. The Department contended these by-products were excisable and denied exemption, confirmed by show-cause notices and impugned orders.The appellants relied on precedents including Priyanka Refineries Ltd. - 2010 (249) ELT 70 (Tri. Bang.), upheld by the Supreme Court, and the Larger Bench decision in M/s Ricela Health Foods Ltd. (Interim Order No. 8-11/2018 dated 30.01.2018), which held that such by-products "cannot be considered anything other than waste" and thus qualify for exemption under the said Notification. The Department maintained its original stance.The Tribunal, after hearing both parties, concluded the issue is "no longer res integra" and affirmed the Larger Bench's reasoning that the by-products are exempt as waste under Notification No. 89/95-CE. Consequently, the impugned orders denying exemption were "not sustainable" and were set aside. Both appeals were allowed.