The Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) on April 26th ordered that Fatty Acids/ Soap stock arising in the course of manufacture of refined palm oil is not liable to central excise duty.
The Appellant, M/s. Sri Devi Oil Pvt. Ltd. was engaged in the business of manufacturing of ‘Refined Palm Oil’ and are registered with the Central Excise Department. They received a Show cause notice alleging that they have cleared fatty acid or soap stock without payment of duty. The original authority also confirmed the demand along with interest and also imposed the penalty which aggrieved the appellants to approach before the Tribunal.
Technical Member Madhu Mohan Damodhar and Judicial Member Sulekha Beevi C.S. depended squarely upon the decision 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 eligible to duty. Hence the order was set aside and the appeal was disposed of in favor of the appellant with consequential relief.
