Acid oil, Fatty acid, Gums and Waxes generated during the process of refining oil are “Waste”, Eligible for Central Excise Duty Exemption: CESTAT [Read Order]

The CESTAT has ruled that acid oil, fatty acid, gums, and waxes generated as by-products during the oil refining process are classified as waste and are eligible for Central Excise duty exemption. This decision is significant for industries involved in oil refining, as it clarifies the tax treatment of these by-products and ensures that they are not subjected to unnecessary tax burdens. The ruling aligns with the principle of taxing only value-added activities.