TMI Blog2024 (3) TMI 849X X X X Extracts X X X X X X X X Extracts X X X X ..... S LIMITED VERSUS CCE, CHANDIGARH, ALLAHABAD [ 2018 (2) TMI 1395 - CESTAT NEW DELHI] where Larger Bench held that Noting that the reference is to decide whether these are to be treated as 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. Considering the aforesaid observations made by the Larger Bench, there are no reason to differ from the same and the impugned order confirming the demand in respect of the Fatty Acids treating them as bye-product set aside. Extended period of limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, which was communicated to the appellant vide letter dated 16.02.2015. 5. Show Cause Notice dated 14.03.2018 was issued under Section 11A(4) of the Central Excise Act, 1944 for demand and recovery of Excise Duty amounting to Rs.1,39,36,950/- in respect of fatty acid cleared during the period from June'2013 to June 2017. The Adjudicating Authority vide ex-parte Order-in-Original dated 24.04.2019 confirmed the demand holding that the goods - fatty acid was a bye-product and not waste, relying upon the Tribunal's decision of CCE, Jalandhar Vs. M/s A.G. Fats Ltd. The appellant contested the issue in appeal relying upon the decision of Larger Bench of the Tribunal given in the case of M/s Ricela Health Foods Ltd, Vs, CCE, Chandigarh, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... termediating 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 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 presen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22 dismissing the Civil Appeal filed by the Department against the Final Order No.60341-60342/2019 dated 01.04.2019 of the Chandigarh Tribunal, disposing of the appeals in terms of the decision of the Larger Bench in the case of M/s. Ricela Health Foods Ltd.(supra). 9. Considering the aforesaid observations made by the Larger Bench, we find no reason to differ from the same and we accordingly set aside the impugned order confirming the demand in respect of the Fatty Acids treating them as bye-product. Since the issue on merits is answered in favour of the appellant/assessee, the issue of extended period of limitation is not required to be gone into. 10. The appeal is, accordingly allowed. [Order pronounced on 19th March, 2024]. - - TaxT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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