TMI Blog2022 (5) TMI 252X X X X Extracts X X X X X X X X Extracts X X X X ..... ding that they are not eligible for the benefit of Notification No.89/1995-CE because they are manufacturing tin containers/HDPE jars as submitted by the Ld. Counsel for the Appellants. The Ld. Commissioner has not appreciated the fact that the tin containers/HDPE jars manufactured are also eligible for exemption under Notification No.10/1996 as submitted by the Appellant. The Larger Bench of the Tribunal in the case of M/S RICELA HEALTH FOODS LTD., M/S J.V.L. AGRO INDUSTRIAL LTD., M/S KISSAN FATS LIMITED VERSUS CCE, CHANDIGARH, ALLAHABAD [ 2018 (2) TMI 1395 - CESTAT NEW DELHI] has held that Noting that the reference is to decide whether these are to be treated as waste for the purpose of exemption N/N. 89/95-CE we note though the exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aptively consumed/used in the packing of its final products. The Appellant had been availing exemption from excise duty thereof under Notification No.10/96-CE dated 23.07.1996, which extends exemption to all goods if the same are consumed within the factory of their production in the manufacture of goods specified in the table wherein all goods classifiable under Chapter 15 (except 1571 10 22, 1520 00 00, 1521 and 1522) were specified under Sl.No.1 of the said table. The Appellant was eligible for benefits of exemption under Notification No.89/1995-CE dated 18.05.1995. In the Show Cause Notice dated 07.05.2013 issued to the Appellant, the Commissioner of Central Excise Service Tax, Patna had alleged that by wrongly availing benefit of Not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E.L.T. 1049 (Tri.LB)], wherein the Tribunal has applied the ratio as laid down by Hon ble Supreme Court in the case of Commissioner of Central Excise Vs. Indian Aluminium Co. Ltd. [2006 (203) E.L.T. 3 (SC)] and held that these incidental products are nothing, but wastes arising during the course of refining of palm oil and cannot be considered as manufactured excisable goods and that these wastes will also be covered by the exemption Notification No.89/1995-CE. It is further submitted that fatty acid is not manufactured as excisable goods from crude palm oil , rather it is the waste arising in the course of manufacture of vanaspati ghee/refined palm oil. He further submitted that the Adjudicating authority has mis-applied himself by sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ust of the arguments by the Revenue is that when a product is capable of being sold for a significant consideration the same cannot be considered as waste. We are unable to accept such summary presumption. Admittedly, in chemical and metallurgical industry when the raw materials are processed with an intended purpose of manufacturing certain final products by a chemical reaction, refining, melting etc. multiple products will result. These products either emerged in the final stage or any of the intermediating stages also. The point for consideration is whether these 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 va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... waste for the purpose of exemption Notification No. 89/95-C.E. we note though the excisability of the product itself is seriously in dispute as per the opinion expressed by us, as above, these cannot be considered as anything other than waste and as such will be covered by the exemption Notification No. 89/95-C.E. This has been pleaded as a alternate argument by the appellant/assessee also. 7. We find that the instant case is squarely covered by the above cited decision of the Larger Bench. We hold that the Appellants are entitled to exemption contained in Notification No.89/1995-CE on the products which arise incidentally to the manufacture of vegetable oils. We find that the impugned order misplaced itself and the findings vis- vis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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