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1. In this appeal, filed by M/s. Fair Exports (India) Pvt. Ltd., the issue involved is whether the benefit of Notification No. 8/97-CE dated 1.3.97 as amended, is available in respect of waste in the form of bones obtained during the process of manufacturing boneless meat.

2. Shri Bipin Garg, learned Advocate, submitted that the appellants, a 100% Export Oriented Unit (EOU), at the relevant time, manufacture and export frozen chilled meat; that during the process of manufacture of the boneless meat, waste in the form of bones is generated when meat is separated from the bones; that the Additional Commissioner, under the Order-in-Original No. 10/2002 dated 1.5.2002, dropped the proceedings initiated under the show cause notice dated 28.2.2002 demanding duty by disallowing the exemption under Notification No. 8/97 as amended; that, however, on appeal filed by the Department, the Commissioner (Appeals), under the impugned order, has set aside the Order-in-Original holding that after the amendment of Notification No. 8/97by Notification No. 13/98-CE, dated 2.6.98, they are not eligible for the exemption. The learned Advocate, further, submitted that the issue involved in the present appeal is squarely covered by the decision of the Appellate Tribunal in the case of CCE, Jaipur-I v. Neelkanth Polymers, 2003 (55) RLT 150 (Cegat), wherein it has been held that proviso to Notification No. 8/97 is not applicable to waste, which is not a finished product. We also heard Shri P.M. Rao, learned DR.

4. Similarly, in the present matter bones are obtained as waste during the process of manufacture of boneless meat and this cannot be treated as a finished product. Accordingly, relying upon the decision in the case of Neelkanth Polymers, we set aside the impugned order and allow the appeal.