Custom, Excise & Service Tax Tribunal
Cce, Ludhiana vs Shree Jindal Proteins Ltd on 19 February, 2018
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL SCO 147-148, SECTOR 17-C, CHANDIGARH-160017 DIVISON BENCH COURT NO.1 Appeal No. E/623-624/2008, E/2488/2008 [Arising out of the Order-in-Appeal No. 381/CE/APPL/LDH/2007 dated 14.12.2007 passed by the CCE (Appeals), Ludhiana, Order-in-Appeal No. 383/CE/APPL/LDH/2007 dated 14.12.2007 passed by the CCE (Appeals), Ludhiana Order-in-Appeal No. 272-CE-APPL-LDH-2008 dated 23.09.2008 passed by the CCE (Appeals), Chandigarh] Date of Hearing/Decision: 19.02.2018 For Approval & signature: Honble Mr. Ashok Jindal, Member (Judicial) Honble Mr. Devender Singh, Member (Technical) CCE, Ludhiana Appellant Vs. Shree Jindal Proteins Ltd. Sangrur Agro ltd. Respondents
________________________________________________ Appearance Shri. Atul Handa, AR- for the appellant Shri. Vikrant Kackaria, Advocate- for the respondent CORAM: Honble Mr. Ashok Jindal, Member (Judicial) Honble Mr. Devender Singh, Member (Technical) FINAL ORDER NO: 60100-60102 / 2018 Per Ashok Jindal:
The Revenue is in appeal against the impugned orders passed by the Ld. Commissioner (A) wherein the case of Appeal No. E/623-624/2008, he hold that the product in question are classifiable under Chapter Heading 1515 of the Central Excise Tariff Act, 1985, but in the third appeal, he hold that the respondents are entitled to avail benefit of exemption Notification No. 89/95-CE dated 18.05.1995.
2. The facts of the case are that the respondents are manufacturer of refined oils through the process of refining the various oil: During the process of manufacturer of refined oil, some by-products namely fatty acids, acid oil, gums, soap stocks, wax, emerges. As the refined oil is exempt from payment of duty, the question arose whether the products emerges during the course of manufacture of final product are dutiable or not? The exemption Notification No. 89/95-CE dated 18.05.1995 has been issued to exempt, the waste arises during the course of manufacturing the exempted goods from payment of duty. The revenue is of the view that as the products emerges during the course of manufacture of refined oil are not waste, therefore, the same are dutiable and the respondents are not entitled to avail benefit of exemption Notification No. 89/95-CE dated 18.05.1995. In these set of facts, various show cause notices were issued to the respondents to demand duty of the said goods. The matters were adjudicated. The adjudicating authority confirmed the demand by denying the benefit of exemption Notification No. 85/95-CE dated 18.05.1995, but the Ld. Commissioner (A) in Appeal No. E/623-624/2008 holds that the said goods are classifiable under Chapter Heading 1515 of the Central Excise Tariff Act and the said goods are exempt from payment of duty in terms of Serial No. 9 of Notification No. 3/2006CE dated 01.03.2006 and dropped the demand against the respondents. But in Appeal No. E/2488/2008, the ld. Commissioner (A) hold that the respondents are entitled for benefit of exemption Notification No. 89/95-CE dated 18.05.1995. Against these orders, the Revenue is in appeal before us.
3. The Ld. AR, Shri. Atul Handa, appeared before us who submits that in Appeal No. E/623-624/2008, the ld. Commissioner (A) has gone beyond the scope of the show cause notice. In fact, in the show cause notices, the sole allegation against the respondents were that they are not entitled for benefit of exemption Notification No. 89/95-CE dated 18.05.1995, whereas, he has gone to classify the goods in some other chapter heading and dropped the charges against the respondents. Therefore, the impugned orders are to be set aside as the ld. Commissioner (A) has gone beyond the scope of the show cause notices. For the Appeal No. E/2488/2008 reiterated the grounds of appeal and submits that the respondents are not entitled to benefit of exemption Notification No. 89/95-CE dated 18.05.1995.
4. On the other hand, the Ld. Counsel appearing on behalf of the respondents submits that the sole issue in the show cause notices is that whether the respondents are entitled to avail the benefit of exemption Notification No. 89/95-CE dated 18.05.1995. The said issue came up before the larger bench of this Tribunal in the case of Ricela Health Food Ltd. & Others wherein vide order dated 8-11/2018 dated 30.01.2018, this Tribunal held that for the goods arising during the course of manufacture of refined oil are entitled to the benefit of Notification No. 89/95-CE dated 18.05.1995, therefore, the issue is no more res-Integra. Hence, the appeals of the Revenue are to be dismissed.
5. Heard the parties and considered the submissions.
6. As the sole issue in the show cause notices is that whether the respondents are entitled to avail benefit of exemption Notification No. 89/95-CE dated 18.05.1995 or not for the goods/products emerges during the process of manufacture of refined oil by the respondent or not? The said issue has been settled by the Larger Bench of this Tribunal in the case of Ricela Health Food Ltd. & Others (Supra) wherein it has been held that for the product emerges during the course of manufacture of refined oil are not excisable goods, and the respondent are entitled to avail the benefit of exemption Notification No. 89/95-CE dated 18.05.1995, therefore, we hold that the respondents are entitled to avail the benefit of exemption Notification No. 89/95-CE dated 18.05.1995.
7. With these observations, we do not find any merit in the appeals filed by the Revenue. Accordingly, the same are dismissed.
(Dictated and pronounced in the open court)
Devender Singh Ashok Jindal
Member (Technical) Member (Judicial)
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