Godavari Edible Bran Oil Pvt Ltd. Vs Commissioner of Central Tax (CESTAT Hyderabad)
Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Hyderabad Bench, has reiterated that products such as R.B. Fatty Acid, R.B. Wax, and R.B. Gums, generated during the refining of rice bran oil, are to be considered “waste” and are therefore exempt from excise duty. This ruling came in the appeal filed by Godavari Edible Bran Oil Pvt Ltd. against the Commissioner of Central Tax.
The department had initially treated these products as by-products and denied the exemption under Notification No. 89/95-CE dated May 18, 1995, leading to a confirmed demand for duty and penalties. However, the Tribunal observed that the issue is “no longer res-integra,” citing several past judgments that consistently classify such incidental products as waste. Key judicial precedents supporting this stance include the Supreme Court’s upholding of the Tribunal’s decision in Commissioner of Central Excise, Chandigarh-I Vs Marico Ltd. [2022 (382) ELT 436 (SC)], and other rulings from various CESTAT benches, such as Ricela Health Foods Ltd. Vs CCE, Chandigarh, Allahabad [2018 (361) ELT 1049 (Tri-LB)] and Kissan Fats Ltd. Vs Commissioner of Central Excise, Chandigarh-II [2024 (387) ELT 369 (Tri-Cha)]. Based on these established legal positions, CESTAT Hyderabad set aside the Commissioner (Appeals)’s order, allowing Godavari Edible Bran Oil Pvt Ltd.’s appeal.
