2014 (6) TMI 52 - AT - Central Excise

Duty demand - Demand of 10% of the value - Non maintenance of separate accounts in respect of inputs and input services used in the manufacture of sugar and other products - Held that - where waste products arises and are sold without payment of duty, there is no need to maintain separate accounts and there is no need to pay 10% of the value in accordance with Rule 6(3) of Cenvat Credit Rules, 2004 - Following decision of Rallis India Ltd. v. UOI 2008 (12) TMI 46 - HIGH COURT BOMBAY - Decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT BANGALORE ruled in favor of the appellant, a sugar manufacturer, who sold Bagasse and Press Mud without paying excise duty. The appellant was not required to pay 10% of the value under Rule 6(3) of Cenvat Credit Rules, 2004 as they did not maintain separate accounts for inputs. The decision was based on the case of Rallis India Ltd. v. UOI. The appeal was allowed, and the stay application was disposed of.