M/S Dhillon Oil And Fats Pvt. Ltd. And Others vs Commissioner Of Central Excise And Service Tax, Chandigarh-II

P. Anjani Kumar, Member (T)

The issue involved in these two appeals, being identical, are taken together for decision.

Briefly stated the facts of the case are that the appellants are engaged in refining of vegetable oils; during the process of the same, gums, waxes and fatty acids are generated; Department was of the opinion that these being excisable products, exemption contained under Notification No.89/95-CE dated 18.05.1995 is not available to the appellants. Show-cause notices were issued and were confirmed by the impugned orders.

Shri Vibhor Garg, learned Consultant appearing on behalf of the appellants, submits that the issue has been agitated by the Department and the appellants over the years; in the case of Priyanka Refineries Ltd. – 2010 (249) ELT 70 (Tri. Bang.), CESTAT has decided the issue in favour of the appellants and the Civil Appeal filed by the Department was dismissed by the Hon’ble Supreme Court – 2011 (274) ELT A16 (SC); CESTAT in the case of M/s A.G. Fats Ltd. – 2012 (277) ELT 96 (Tri. Del.) decided the issue in favour of the Department. However, Hon’ble Apex Court has dismissed the Civil Appeal and the Review petition filed by the Party. Tribunal Mumbai, in the case of Maheswari Solvents Extractions Ltd. – 2014 (299) ELT 116, passed detailed order, after considering the dismissal of the Civil Appeal by the Hon’ble Apex Court in favour of the appellants. He submits that the issue has attained finality with the decision of the Larger Bench of the Tribunal in the case of M/s Ricela Health Foods Ltd. and others vide Interim Order No.8-11/2018 dated 30.01.2018. This Bench has followed the order in the case of A.P. Refinery Pvt. Ltd. and Others vide Final Order No. 63031-63035/2018 dated 31.08.2018 and therefore, the issue is no longer res integra.

Shri Raman Mittal, learned Authorized Representative for the Department, reiterates the findings of the impugned order.

Heard both sides and perused the records of the case. We find, as submitted by the learned Counsel for the appellants, that the issue is no longer res integra; we find that Larger Bench of the Tribunal in the case of M/s Ricela (supra) has discussed the issue at length and came to the conclusion that the wax, gums and fatty acids emerging in the process of refining of vegetable oils cannot be considered anything other than waste and as such, the exemption contained under the Notification No.89/95-CE is available to the appellants. In view of the same, we find that the impugned orders are not sustainable and are liable be set aside and we do so.

Accordingly, both the appeals are allowed.