Case Law Details

Case Name : M/s. Sri Devi Oil Pvt. Ltd. Vs CCE (CESTAT Chennai)
Appeal Number : Appeal No. E/321/2012
Date of Judgement/Order : 26/04/2018
Related Assessment Year :

M/s. Sri Devi Oil Pvt. Ltd. Vs CCE (CESTAT Chennai)

Brief facts are that the appellants are manufacturers of ‘Refined Palm Oil’ and are registered with the Central Excise Department. Show cause notice was issued alleging that they have cleared fatty acid or soap stock without payment of duty. After due process of law, the original authority confirmed the demand along with interest and also imposed penalty. Aggrieved, the appellants are now before the Tribunal.

2. The ld. counsel Ms. K. Nancy appearing for the appellant submitted that the issue for consideration is whether the appellants are liable to pay excise duty on fatty acid / soap stock which is generated as bye-product in the course of manufacture of refined palm oil. This issue has been decided by the Larger Bench in the case of M/s. Ricela Health Foods Ltd. & Ors. Vs. Commissioner of Central Excise, Chandigarh – 2018 (2) TMI 1395, wherein it has been held that the said products are not exigible to duty.

3. The ld. AR Shri S. Govindarajan reiterated the findings in the impugned order.

4. Heard both sides.

5. The issue whether the fatty acid / soap stock, etc. arising in the course of manufacture of refined palm oil is liable to central excise duty was considered by the Larger Bench as cited supra. The Tribunal had considered the decision of the Hon’ble Apex Court in the case of Commissioner of Central Excise Vs. Indian Aluminium Company – 2006 (203) ELT 3 (SC) and other cases wherein it was categorically held that these are treated as waste for the purpose of exemption Notification 89/95-CE and therefore not liable to duty.

6. Following the above decision of the Larger Bench of the Tribunal, we hold that the demand cannot sustain. The impugned order is set aside and the appeal is allowed with consequential relief, if any.

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