Case Law Details
Awn Agro P Ltd Vs C.C.E. & S.T. (CESTAT Ahmedabad)
Introduction: In a significant judgment, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Ahmedabad has ruled that spent earth, a by-product in the process of oil refining, is not subject to Central Excise Duty. The case in question is Awn Agro P Ltd Vs C.C.E. & S.T., and the ruling has relied on multiple precedents to arrive at this decision.
The Core Issue and Legal Questions: The primary issue in the case revolved around the classification of spent earth arising from the oil refining and bleaching process under the Central Excise Tariff Act 1985. The question was whether spent earth should be considered a ‘manufactured good’ and therefore subject to Central Excise Duty.
The Appellant’s Arguments: Represented by Shri S.J. Vyas, the appellant argued that the issue was already resolved (“res-Integra”) as per various past judgments like Nk Proteins Limited, Maheshwari Solvent Extraction Ltd., and others. These previous decisions clarified that spent earth should not be subject to excise duty.
The Revenue’s Counter Argument: Shri Ashok Thanvi, appearing on behalf of the revenue, reiterated the findings of the impugned order, arguing that spent earth should be liable for excise duty.
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