Products Generated During Rice Bran Oil Refining Treated as “Waste”, Exempt from Excise Duty: CESTAT

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has ruled that certain products generated during the process of refining rice bran oil are to be treated as "waste" and are therefore exempt from central excise duty. The case involved by-products such as fatty acids and gums that are separated during the refining process. The excise department had sought to levy duty on these products, classifying them as manufactured goods. However, the tribunal observed that these are unavoidable by-products that emerge from the main manufacturing process. It concluded that these items are essentially waste or refuse from the refining of rice bran oil. Since the Central Excise Tariff exempts waste and scrap generated during manufacturing, the tribunal held that no excise duty is leviable on these by-products, providing a significant relief to the edible oil industry.