The Hyderabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the products emerging in the course of refining rice bran oil can be considered as waste or by-product and no excise duty is payable.
The bench of Angad Prasad (Judicial Member) and A.K. Jyotishi, (Technical Member) has observed that the products emerging in the course of refining rice bran oil can be considered as waste or by-product and they are entitled for benefit of Notification 89/95- CE dated 18.05.1995.
The appellants/assessee are engaged in manufacture of refined rice bran oil and in the process of refining, certain wastes are arising in the nature of R.B. Fatty Acid, R.B. Wax and R.B. Gums which department felt that are in the nature of by-product. The appellant claimed benefit of exemption 89/95-CE dated 18.05.1995. However, the same was denied considering that these products were not waste and they were in the nature of by-products.
The demand was confirmed along with imposition of penalty. On appeal, while the penalty was set aside and the demand was upheld.
The tribunal while allowing the appeal held that the issue is no longer res-integra and it has been held that they are waste products and are entitled for exemption in terms of said notification. Accordingly, we find that the order of the Commissioner (Appeals) is not sustainable in the facts of the case and therefore is set aside.
Case Details
Case Title: M/s Godavari Edible Bran Oil Pvt Ltd. Versus Commissioner of Central Tax Visakhapatnam– GST
Case No.: Excise Appeal No. 26628 of 2013
Date: 17.06.2025
Counsel For Appellant: B. Seshagiri Rao
Counsel For Respondent: V Srikanth Rao
