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2016 (9) TMI 86 - AT - Central ExciseExcisability - Press-mud - arose during the process of manufacture of excisable goods i.e. Sugar, and sold on consideration - Held that - the issue is squarely covered by the decision of the Hon ble Supreme Court in the case of UOI vs. DSCL Sugar Limited 2015 (10) TMI 566 - SUPREME COURT read with the decision of the Hon ble Allahabad High Court in the case of CCE, Lucknow vs. Kisan Sahakari Chini Mills Limited 2013 (10) TMI 1197 - ALLAHABAD HIGH COURT . - Decided in favour of appellant
Issues Involved:
Whether Press-mud arising during the manufacture of excisable goods is excisable goods; applicability of Rule 6(3) of Cenvat Credit Rules, 2004; recoverability of CENVAT credit on common input services; recoverability of interest and imposability of penalty under Rule 14 of Cenvat Credit Rules, 2004 and relevant sections of the Central Excise Act, 1944. Analysis: The central issue in this case revolves around determining whether Press-mud, a by-product of the manufacturing process of excisable goods like Sugar, qualifies as excisable goods itself. The appellant is contesting the applicability of Rule 6(3) of Cenvat Credit Rules, 2004 concerning the CENVAT credit taken on common input services used in the production of both dutiable and exempted goods, including Press-mud. Additionally, the adjudicating authority's decision on the recoverability of the amount under Rule 6(3) and Rule 14 of Cenvat Credit Rules, 2004 for a specific period is under scrutiny. Moreover, the issue of whether interest can be recovered and penalty imposed under Rule 14 of Cenvat Credit Rules, 2004, in conjunction with Section 11AB of the Central Excise Act, 1944, and Rule 15 of Cenvat Credit Rules, 2004, in connection with Section 11AC of the Central Excise Act, 1944 is also being examined. The appellant's counsel relies on legal precedents, specifically citing the decision of the Hon'ble Supreme Court in a particular case and the judgment of the Hon'ble Allahabad High Court in another case. These cases provide a legal framework for the current dispute, establishing precedents that may influence the outcome of the present matter. The appellant contends that the issue at hand has already been settled by these judicial pronouncements, indicating a clear legal position on the matter. The Tribunal's analysis reveals that the issue in question aligns with the decisions cited by the appellant's counsel. Referring to the judgment of the Hon'ble Allahabad High Court and the Hon'ble Supreme Court, the Tribunal highlights the interpretation of relevant legal provisions and their application to similar cases. The judgment emphasizes the definition of "manufacture" as per the Central Excise Act and the criteria for determining whether a process falls within this definition. Based on the legal principles elucidated in the cited cases, the Tribunal concludes that Press-mud does not qualify as excisable goods, thereby negating the application of Rule 6 of the Cenvat Rules, 2004 to the present scenario. Consequently, the Tribunal allows the appeal, indicating a favorable decision for the appellant based on the legal precedents and the interpretation of relevant statutory provisions. The order signifies the resolution of the dispute in favor of the appellant, as dictated and pronounced in the open court, thereby providing a definitive conclusion to the legal proceedings.
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