2010 (12) TMI 1158 - HC - Central Excise

Summary

Issues involved: Whether bagasse can be subjected to duty under the Central Excise Act, and the applicability of Rule 6 of the Cenvat Credit Rules, 2004.

Summary:
The issue in this case revolves around whether bagasse, a byproduct of sugar manufacturing, can be subjected to duty under the Central Excise Act. The Tribunal has previously held that bagasse is a waste product and not a final product, thus not attracting duty. The Department's appeal against this decision was dismissed by the Supreme Court. The petitioner argues that circulars issued by the Board and Chief Commissioner directing duty on bagasse conflict with the law. They rely on legal precedents to support their stance that duty cannot be imposed on marketable waste products.

Regarding the maintainability of the writ petition challenging the circulars, the court notes that the High Court could have rejected such objections, and the circulars could not have been challenged before departmental authorities. The petitioner cites a case where a similar circular was deemed binding on the assessing authority, supporting the validity of their challenge.

The court acknowledges the need to determine whether duty can be charged on bagasse and if Rule 6 applies in this scenario. Given the circulars issued by the Board and Chief Commissioner, the court stays further proceedings until the next listing date, indicating satisfaction with the binding nature of the circulars on the authorities.