2012 (8) TMI 1080 - AT - Central Excise

Summary

Issues involved: Application for waiver of dues for clearance of bio-compost without payment of duty due to mixing waste products generated during sugar manufacture.

Summary:

Issue 1: Waiver of dues for clearance of bio-compost without payment of duty

The applicant, engaged in sugar and molasses manufacture, converted waste products into bio-compost cleared without duty payment. Revenue raised demand due to availing credit for input used in dutiable and exempted goods. Tribunal referred to settled case law and held that the demand for bio-compost clearance without duty payment is not sustainable. Show cause notice was deemed defective for not specifying inputs leading to bio-compost generation. Impugned orders were set aside, and appeal was allowed after waiving pre-deposit of dues.

Conclusion:
The Tribunal ruled in favor of the applicant, setting aside the demand for duty payment on bio-compost clearance and allowing the appeal after waiving the pre-deposit of dues.