TMI Blog2014 (3) TMI 968X X X X Extracts X X X X X X X X Extracts X X X X ..... t prima facie case for waiver of pre-deposit on merits. Accordingly, the requirement of pre-deposit is waived and stay against recovery is granted during pendency of the appeal. - Stay granted. - E/2101/2012-DB - Misc. Order Nos. 20646 & 20648/2014 - Dated:- 10-3-2014 - Shri B.S.V. Murthy, Member (T) and S.K. Mohanty, Member (J) Shri G. Mohan Rao, Advocate, for the Appellant. Shri Ganesh Havanur, AR, for the Respondent. ORDER Appellant is engaged in the manufacture of Edible Refined Palm Oil and the refined palm oil is exempted under Notification No. 3/2006, dated 1-3-2006. Revenue has entertained a view that the fatty acid distillate which emerges as a by-product falls under Heading No. 38231900 of the First Schedule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eading of the exemption notification that it is exempts only those waste which are not only arising in the course of manufacturing of exempted goods but are also marketable, excisable and otherwise chargeable to Central Excise duty. As the waste has not been defined under the Act, we have relied upon the dictionary meaning and judicial interpretation of the scope of the term waste in the above context of the exemption notification. The dictionary meaning for waste are as given below:- (a) The Merriam Webster Dictionary An unwanted by-product of a manufacturing or chemical process, refuse. (b) Bloomsbury English Dictionary Unwanted Material, unwanted or unusable items, remains or by-products or ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -assembly part and intermediate part . So read, it is clear that the word consumables therein refers only to material which is utilized as an input in the manufacturing process but is not identifiable in the final product by reason of the fact that it has got consumed therein. It is for this reason that consumables have been expressly referred to in the said provision, though they would fall within the broader scope of the words raw material . Since the natural gas used by the appellant does not tend to the making of the end product, it is not a consumable . Therefore the word waste has to be read as being similar character to the words Scrap and parings are marketable and having the value in commercial trade. 9.2 In the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est to understand the concept of waste in the Exemption Notification No. 89/95 as well. 11. The dictionary meaning and judicial pronouncement of the Apex Court it is clear that waste also include by-products arising in the manufacturing process, not usable for original purpose or any other process by the manufacturer. 12. The appellant manufacture exempted goods i.e. Refined Rice Bran Oil from crude rice bran oil by manufacturing process which is aimed at getting rid of the subject goods and thereby to manufacturing the said exempted refined oil and product which is fit for human consumption. Therefore, the impugned goods arising in the course of manufacturing of exempted goods are waste within the scope and ambit of exemption notific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hould be something that was intended to be different product of manufacture by the industrial unit. At this stage, in view of the detailed discussions about waste or by-product by the Tribunal in the case of Maheshwari Solvent Extractions Ltd., we consider that the appellant has made out prima facie case for waiver of pre-deposit on merits. Accordingly, the requirement of pre-deposit is waived and stay against recovery is granted during pendency of the appeal. 5. At this stage, we take note of the fact that early hearing application has been filed by Revenue for hearing the appeal out-of-turn basis. Since the stay application itself had not been decided, the application for early hearing of the appeal is rejected as premature. At this st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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