Kissan Fats Limited Vs Commissioner of Central Excise (CESTAT Chandigarh)
CESTAT Chandigarh held that that waste, gums, fatty acids etc. arising during the course of manufacture of vegetable oils are eligible for the exemption Notification No.89/95-CE dated 18.09.1995.
Facts- The appellants are manufacturers of vegetable oils and have availed benefit of Notification No.89/95-CE dated 18.09.1995 on the fatty acids, acid oils, gum and sludge, waxes and spent earth etc., arising during the manufacture of vegetable oils. The Department contended that the items manufactured do not qualify to be waste in terms of the said notification. The availment of Notification No.10/1996 by the appellants has also been disputed by the Department. Show-cause notices were issued for recovery of duty and penalty and were confirmed by the Original/ Appellate Authorities.
Conclusion- Held that we are of the considered opinion that waste, gums, fatty acids etc. arising during the course of manufacture of vegetable oils are eligible for the exemption Notification No.89/95. Coming to the issue of applicability of the Notification No.10/96 dated 23.07.1996 to the plastic/ tin containers manufactured by the appellants, we find that this Bench vide Final Order No.61227/2019 held that the said plastic/ tin containers are eligible for exemption. We also find that the Commissioner (Appeals) vide OIA No.164-167 dated 25.04.2013 has held similarly. These orders have attained finality. Therefore, we have no hesitation, whatsoever, that plastic/ tin containers manufactured and used for packing of the final products i.e. vegetable oils are eligible for exemption Notification No.10/96 dated 23.07.1996.
FULL TEXT OF THE CESTAT CHANDIGARH ORDER
The appellants, M/s BCL Industries and Infrastructure Limited; M/s Kissan Fats Limited and M/s Sangrur Agro Limited, have filed these appeals. The issue being common to all the appeals, they are being taken up together for decision. The appellants are manufacturers of vegetable oils and have availed benefit of Notification No.89/95-CE dated 18.09.1995 on the fatty acids, acid oils, gum and sludge, waxes and spent earth etc., arising during the manufacture of vegetable oils. The Department contended that the items manufactured do not qualify to be waste in terms of the said notification. In respect of Appeal Nos. E/61359/2018, E/61462/2018 and E/60671/2019, the availment of Notification No.10/1996 by the appellants has been disputed by the Department. Show-cause notices were issued for recovery of duty and penalty and were confirmed by the Original/ Appellate Authorities as mentioned above.
The details of the appeals are as follows:
