2018 (8) TMI 782 - AT - Central Excise

CENVAT Credit - Baggasse emerged during the course of manufacture of sugar, stands cleared by the appellant without payment of duty - Rule 6(3) of Cenvat Credit Rules - Held that - The issue stands decided by Hon ble Supreme Court in the case of Union of India v. DSCL Sugar Ltd. 2015 (10) TMI 566 - SUPREME COURT laying down that Bagasse being residue of agriculture product and not excisable, the same is not covered by the definition of manufacture and consequently the duty liability under Rule 6(3) would not arise - appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT ALLAHABAD ruled in favor of the appellant, setting aside the demand for payment of duty on bagasse under Rule 6(3) of Cenvat Credit Rules. The decision was based on precedents from the Hon'ble Allahabad High Court and the Hon'ble Supreme Court, which clarified that bagasse is not excisable and does not incur duty liability. The appeal was allowed with consequential relief.