TMI Blog2018 (7) TMI 671X X X X Extracts X X X X X X X X Extracts X X X X ..... considered as manufactured excisable goods. Thus, no duty can be demanded on such items like fatty acids, soap stock and spent earth, which arise during the course of manufacture of refined oils. Demand cannot sustain - appeal allowed - decided in favor of appellant. - E/249 – 252/2012 - 41293-41296/2018 - Dated:- 23-4-2018 - Ms. Sulekha Beevi, Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Ms. K. Nancy, Advocate for the Appellant Shri A. Cletus, ADC (AR) for the Respondent. ORDER Per Bench The allegation against the appellants is that they failed to discharge duty on the clearances of Fatty Acid, Soap Stock, Spent Earth etc. 2. The appellants are engaged in the manufacture of Refined ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or liable to excise duty or not. The said issue was considered by the Larger Bench of the Tribunal in the decision cited by the Ld. Counsel for the appellants and the Tribunal has held that the process of manufacture is for refined oil and the waste which arises during the course of such manufacture cannot be considered as manufactured excisable goods. Thus, no duty can be demanded on such items like fatty acids, soap stock and spent earth, which arise during the course of manufacture of refined oils. The relevant portion of the decision is reproduced as under:- 10. In view of the ratio adopted by the Apex Court while arriving at the above decisions, the point for consideration in the present dispute is the gums, waxes and fatty acid t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se are to be considered as manufactured goods for excise levy based on the statutory definition for manufacture or should be considered as manufactured goods based on the likely value they may command while selling. We are clear that the value that a product may or may not fetch cannot be a determinative factor to decide whether the same is a manufactured final product/by product or a waste/refuse arising during the course of manufacture of final products. This much is clear from the ratio of the Apex Court decision in Indian Aluminium Co. (supra). While no general guidelines can be laid down to decide when a product will be treated as a waste or a by product, in the present set of facts the products under consideration are clearly not in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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