2015 (11) TMI 594 - AT - Central Excise

Reversal of CENVAT Credit - Whether the appellant is under a legal obligation to either reverse the CENVAT credit or to pay an amount in terms of the provisions of Rule 6 of the CENVAT Credit Rules in respect of services utilised for the manufacturer of the sugar, which have also resulted in emergence of bagasse as a waste product, which was further used as fuel to generate steam in boilers - Held that - issues are no more res integra in terms of the decision of the Hon ble Allahabad High Court in the case of Balrampur Chini Mills Ltd. Vs. UOI 2013 (1) TMI 525 - ALLAHABAD HIGH COURT , wherein the Board s Circular No. 904/24/2009-CX dt. 28/10/2009, requiring reversal of credit or payment of an amount in terms of Rule 6 stand quashed. By following the same, I set aside the impugned orders - Decided in favour of assessee.

Summary

The appellate tribunal in Bangalore allowed the appeal, stating that the appellant is not obligated to reverse CENVAT credit or pay under Rule 6 for services used in manufacturing sugar resulting in bagasse waste. The decision was based on a previous ruling by the Allahabad High Court. The impugned orders were set aside, and both appeals were allowed with consequential relief to the appellants.