2016 (12) TMI 1753 - HC - Central Excise

Excisability - waste - Bagasse - Held that - The questions of law have been answered by Hon ble Apex Court in the case of Union of India v. DSCL Sugar Ltd. 2015 (10) TMI 566 - SUPREME COURT conclusively holding that bagasse is not an excisable item and it is only an agricultural waste, which emerges during process of sugar - the questions of law are answered in favour of the assessee and against the department.

Summary

Issues Involved:
1. Appeal filed under Section 35G of the Central Excise Act, 1944 against Tribunal's order.
2. Justification of Tribunal's decision to allow department's appeal against the appellants' appeal.
3. Validity of upholding the adjudication order without considering the time-barred demand.
4. Confirmation of demand and penalty when no rules invoked are attracted.
5. Initiation of recovery proceedings in the case.

Analysis:

1. The case involves an appeal filed under Section 35G of the Central Excise Act, 1944 against an order passed by the Tribunal dated 15-10-2009. The questions of law raised in the appeal include the justification of allowing the department's appeal against the appellants' appeal and the validity of upholding the adjudication order without considering the time-barred demand.

2. The Hon'ble Apex Court's decision in the case of Union of India v. DSCL Sugar Ltd. conclusively held that bagasse is not an excisable item but an agricultural waste that emerges during the process of sugar. This decision is crucial in determining the outcome of the case as it directly impacts the interpretation of the Central Excise Act, 1944.

3. The questions of law raised in the appeal have been answered in favor of the assessee and against the department based on the precedent set by the Hon'ble Apex Court. As a result, the Tribunal's decision to confirm the demand and penalty without considering the applicability of the rules invoked is deemed unjustified.

4. Given the conclusive ruling on the nature of bagasse and its non-excisable status, the Tribunal's decision to initiate recovery proceedings in the case is unwarranted. The appeal is disposed of in favor of the assessee, and no costs are awarded in this matter.

Overall, the judgment highlights the importance of legal precedent in interpreting the Central Excise Act, 1944 and emphasizes the need for adherence to established legal principles in adjudicating excise-related matters.