Excise – Cestat Ahmedabad: Spent earth arising out of the refined vegetable oil are waste and are not intentionally manufactured but only arise during the process – Hence, entitled for duty exemption – Appeal allowed [Order attached]
Order Date – 07 February 2023
Parties: Adani Wilmar Ltd Vs C.C.E. & S.T.-Ahmedabad-iii
- The Appellant, Adani Wilmar Ltd, engaged in manufacture of vegetable refined oil which is exempted, during the process spent earth is emerged.
- Whether the appellant is liable to pay excise duty on spent earth arising out of the refined vegetable oil?
- The Tribunal held that the issue is already considered by this Tribunal in the case of M/s. Priyanka Refineries Pvt Ltd Unit II. Wherein it was held that “these products are not intentionally manufactured but only arise during the process of refining of crude vegetable oil and therefore should be considered as waste and they are entitled to the benefit of exemption notification 89/1995-CE.”
- It was also decided in the case of M/s. RICELA HEALTH FOODS LTD., M/S. J.V.L. AGRO INDUSTRIAL LTD., M/S. KISSAN FATS LIMITED by Cestat – New Delhi, that the process of manufacture is for refined rice bran oil. As such, these Incidental products are nothing but waste arising during course of refining of rice bran oil and applying the ratio of Apex court, these cannot be considered as manufactured excisable goods.
- Hence the issue is no longer res-integra accordingly, the impugned order is set aside. Appeal is allowed.