TMI Blog2018 (11) TMI 965X X X X Extracts X X X X X X X X Extracts X X X X ..... Dated:- 14-11-2018 - MR. S.S GARG, JUDICIAL MEMBER And MR. C. J. MATHEW, TECHNICAL MEMBER Ms Lakshmi G.K, CA For the Appellant Dr. J. Harish, Deputy Commissioner (AR) For the Respondent ORDER Per: S.S GARG The present appeal is directed against the impugned order dated 03.11.2017 passed by the Commissioner (Appeals) whereby the Commissioner (Appeals) has rejected the appeal of the appellant. Briefly the facts of the present case are that the appellants are manufacturers of Refined Edible Oil. Based on Intelligence gathered by the Central Excise officers that the appellant are engaged in the manufacture of Refined Edible Oil (Sunflower oil) and that certain by-products viz. Fatty Acid, Waxes, Spent Earth are o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 44. Aggrieved by the said order, appellant filed appeal before the Commissioner and the Commissioner rejected the said appeal. Hence the present appeal. 2. Heard both the parties and perused the records. 3. Learned counsel for the appellant submitted that the impugned order is contrary to the binding judicial precedent. She further submitted that the appellant is a manufacturer of exempted goods which is edible Sunflower oil and in the process of manufacture of the edible oil, the wastage generated i.e. Free Fatty Acid, Waxes and Spent Earth which are inevitable waste. She further submitted that the appellant never intended to manufacture the same and the same cannot be considered as a result of manufacturing process since it is a was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e demand of excise duty on the same is not legal and proper. 4. On the other hand the learned AR defended the impugned order and relied upon the decision in the case of Commissioner of Central Excise, Jalandhar Vs. A.G. Fats Ltd. reported in 2012 (277) E.L.T. 96 (Tri.- Del.). He further submitted that this decision of the Tribunal has been upheld by the Hon ble Supreme Court in the case of A.P. Solvex Ltd. Vs. Commissioner 2014 (300) E.L.T. A74 (S.C). 5. After considering the submissions of both the parties and perusal of the material on record, we find that on the issue involved in the present case there was conflicting decisions of the Division Benches of the Tribunal and the matter was referred to the Larger Bench and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the nature of by-products emerging during the course of manufacture. The process of manufacturing refined vegetable oil is essentially by removing the unwanted materials that were present in the crude vegetable oil so that a refined vegetable oil can be obtained. In this process of refining, the unwanted materials are removed. Hence, we are of the considered view that the removal of unwanted materials resulting in products like gums, waxes and fatty acid with odour cannot be called as a process of manufacture of these gums, waxes and fatty acid with odour. The process of manufacture is for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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