Custom, Excise & Service Tax Tribunal
M/S. Skm Egg Products Export (I) Ltd vs Cce, & St, Salem on 19 July, 2016
IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL SOUTH ZONAL BENCH AT CHENNAI E/EH/40618 - 40625/2015 and E/42399 - 42406/2014 (Arising out of Order-in-Appeal No. 147 - 154/2014 (CE) dated 06.08.2014 passed by the Commissioner of Central Excise, Salem). M/s. SKM Egg Products Export (I) Ltd. : Applicant Vs. CCE, & ST, Salem : Respondent
Appearance Shri M. Saravanan, Consultant, for the applicant Shri A. Cletus, ADC (AR), for the respondent CORAM Honble Shri P.K. CHOUDHARY, Judicial Member Honble Shri C. J. Mathew, Technical Member Date of Hearing/Decision: 19.07.2016 FiINAL ORDER No. 41192-41199 / 2016 Per: P.K. Choudhary, The applicant has filed miscellaneous applications for early hearing of the appeals filed against the Order-in-Appeal No. 147 - 154/2014 (CE) dated 06.08.2014 passed by the Commissioner of Central Excise, Salem. Shri M. Saravanan, Ld. Consultant, submits that the appellant on the very same issue for earlier period, the Honble Tribunal vide Final Order No.40468/2013 dated 18.09.2013 and Final Order No. 40404 40407/2015 dated 09.04.2015, had categorically held that egg shell waste is a waste from Food Industry and it is exempted from excise duty as per Sl.No. 21 of Notification No. 23/2003 CE dated 31.03.2003. Therefore, he prays that since the issue is stand settled in favour of the appellant by the Chennai Bench of the Honble Tribunal, the appeals itself may be taken up for disposal.
3. Heard both sides. Since the issue is settled in favour of the appellant assessee, after allowing the early hearing application the appeals are taken up for hearing and disposal. On perusal of the decision of the Chennai Bench of the Honble Tribunal relied by the ld. Counsel, we find that the Tribunal held that the benefit of Notification No. 23/2003 CE dated 31.03.2003 is available to Egg Shell wastes. The relevant portion of the said decision is reproduced as under:-
11.?Further, the appellant has a strong case in view of the exemption at S. No. 21 of Notification No. 23/2003-C.E., dated 31-3-2003, which exempts waste from food industries manufactured in 100% EOUs. 100% EOU is normally expected to export all its products. However, for some of the products of residual nature, like egg shell, there may not be an export market and EOUs will be forced to clear such waste into domestic tariff area. The exemption enables 100% EOU producing food products to dispose of waste products, if arising out of indigenous raw materials, without payment of any excise duty to Domestic Tariff Area. If the waste product is not excisable there is no need for the exemption. The notification goes one step further to make the liability clearer by providing that even if any waste product may be considered as manufactured product, duty need not be paid on such product. Egg Shell Powder is almost similar to oil cake left behind when vegetable oil is extracted from oil seeds. Oil cakes also are used in making animal feed. For oil cake exemption is provided at S. No. 20 of the notification. Similar exemption can be seen for tea waste and coffee waste at S. No. 19 of the same notification. So, we see no reason to deny the benefit of this notification to Egg Shell Powder. By respectfully following the ratio of the above decision of the Tribunal, we set aside the impugned order and allow the appeals filed by the appellant. The miscellaneous applications MA (EH) are also disposed of.
(Dictated and pronounced in open court) (C.J. MATHEW) (P.K. CHOUDHARY) TECHNICAL MEMBER JUDICIAL MEMBER BB 1