2013 (5) TMI 483 - AT - Central Excise

Cenvat Credit on Bagasse - waste or by product - case of the Revenue that the appellants are liable to pay 10% of the price of bagasse as the appellants were availing credit in respect of common inputs used in the manufacture of the goods cleared on payment of duty as well as nil rate of duty - Held that - As decided in Balram Chini Mills Ltd. vs. Union of India and others 2013 (1) TMI 525 - ALLAHABAD HIGH COURT bagasse generated from crushing of sugarcane is neither manufactured goods nor manufactured final product, but it is a residue /waste, hence it cannot be recorded as final product exempt from duty. In favour of assessee.

Summary

The Appellate Tribunal CESTAT NEW DELHI ruled in favor of the appellant in the case regarding the clearance of bagasse without duty payment. The decision was based on the Allahabad High Court's ruling that bagasse is a residue/waste and not a manufactured final product exempt from duty. The appeal was allowed, setting aside the previous order, and the appellants are entitled to consequential relief as per the law.