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TMI Blog2023 (9) TMI 714X X X X Extracts X X X X X X X X Extracts X X X X ..... llants are engaged in the process of refining the crude coconut oil and are clearing the refined coconut oil availing full exemption under Notification No. 4/2005-CE dated 01.03.2005. They were also clearing 'Sludge Oil' (Soap Stock) which is a bye product arising in the course of the manufacture of refined coconut oil. The Department was of the view that the appellant has to pay duty on the Sludge Oil (Soap Stock). A Show Cause Notice was issued proposing to demand the duty on Sludge Oil for the different periods. After due process of law, the original authority confirmed the demand, interest and imposed penalty. Against such order, the appellant filed appeal before the Commissioner (Appeals) who upheld the same. Hence, these appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s is whether the Sledge Oil (Soap Stock) which emerges during the manufacture of refined coconut oil is eligible for exemption under Notification No. 89/95-CE dated 18.09.1995 or not. The very same issue was considered by the Tribunal in the case of Ricela Helath Foods Ltd. Vs. Commissioner of Central Excise [2018 (361) ELT 1049 (Tri. -LB)]. The relevant paragraphs read as under:- "9. We have heard both the sides and perused the appeal record to examine the reference made by the Division Bench. Since the appellants submitted on the excisability itself the first point for decision is the excisability of the products, in question. The appellants strongly contended that even before examining the admissibility of exemption under Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of "waste and scrap". 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 that emerge as a by-product can be considered as a products arising out of a manufacturing process. The appellants are engaged in converting crude rice bran oil into refined rice bran oil. In effect the processes undertaken by them are towards this intended final product. For producing refined rice bran oil, the gums and waxes available in the crude rice bran oil are to be removed by de-guming and de-waxing. Thereafter by a process of de-acidification/de-odourisation, by distillation the refined oil is obtained. In this final process fatty acid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 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 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 wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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