TMI Blog2019 (7) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... ess of refining of crude vegetable oil and therefore should be considered as waste and they are entitled to the benefit of exemption N/N. 89/1995-CE. Demand not sustainable - appeal allowed - decided in favor of appellant. - Appeal No. E/30431/2017 - A/30578/2019 - Dated:- 17-6-2019 - MS. SULEKHA BEEVI C.S, MEMBER (JUDICIAL) And MR. P. VENKATA SUBBA RAO, MEMBER (TECHNICAL) Present for the Appellant: Shri B. Venugopal, Advocate Present for the Respondent: Shri G.V. Ramanaiah Shetty, Authorized Representative. ORDER PER: P. VENKATA SUBBA RAO 1. This appeal is filed against the Order-in-Appeal No. HYD-EXCUS-002- APP-041-16-17 dated 30.12.2016 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere is also no dispute that the goods fall under Central Excise Tariff. The show cause notice was issued on 01.06.2015 covering the period May, 2014 to July, 2014 demanding Central Excise duty of ₹ 4,36,550/- on these products under Sec.11A of the Central Excise Act along with interest under Sec.11AA. It was also proposed to impose a penalty upon them under Rule 25 of Central Excise Rules, 2002. After following due process, the lower authority confirmed the demand as proposed along with interest and imposed a penalty of equal amount under Rule 25 of Central Excise Rules, 2002. 4. Aggrieved, the appellant appealed before the first appellate authority who set aside the penalty imposed under Rule 25 but confirmed the dema ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ench may be followed and the demand may be set aside. 7. Learned departmental representative reiterates the findings of the lower authorities and asserts that these products are in the nature of by-products and not in the nature of waste and scrap and therefore are not entitled to the benefit of exemption notification 89/1995-CE. 8. We have considered the arguments on both sides and find that the issue in hand is identical to the issue before the Larger Bench of the Tribunal in the case of Ricela Health Foods Ltd (supra). The short point to be decided is whether the fatty acids/ wax/ gums, etc., which arise while crude vegetable oil is refined should be considered as waste or as by-product. If these are consi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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