9911796707
TMI Blog1999 (12) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... the very first stage of extraction of juice from sugarcane, bagasse gets generated as a waste. No input whatsoever is used at this stage of the manufacturing process. The appellants have been clearing bagasse without payment of duty. The department, however, wanted to treat the said goods as one of the final products of the appellants and to levy central excise duty thereon under Rule 57CC (1) of the Central Excise Rules, 1944. The department, therefore, issued show cause notice to the appellants demanding an amount of Rs. 57,426/- as duty on bagasse cleared by the appellants during January to March, 1997, and proposing to impose penalty on the party for alleged contravention of the Central Excise Rules. The jurisdictional Assistant Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case, bagasse was generated from the crushing of sugarcanes in the appellants mill, which was a preliminary mechanical process not involving the use of any inputs whatsoever attracting the facility of Modvat credit under Rule 57A of the Central Excise Rules. The learned Advocate further submits that the reasoning of the lower appellate authority for invoking the provisions of Rule 57CC to levy central excise duty on bagasse is patently erroneous in as much as the sine-qua-non for such invocation does not exist. The view taken by the learned Commissioner (Appeals) that the very fact of bagasse being classified under chapter sub-heading 2310.00 of the Schedule to the Central Excise Tariff Act would mean that the said goods are recognised as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lving the use of any inputs whatsoever. The learned Advocate, therefore, submits that his case stands on a much stronger footing than the cases of Shankar Sugar Mills and Titawai Sugar Complex. He, therefore, submits that bagasse should be held to be a mere waste generated from the process of manufacture of sugar. He, therefore, prays for allowing the appeal. 5. The learned JDR has reiterated the findings and observations in the orders of the lower authorities and has pleaded for dismissing the appeal. 6. Having carefully examined the rival submissions and the case law cited, I have no doubt in my mind that Rule 57CC of the Central Excise Rules cannot be invoked to levy any central excise duty on bagasse which was generated from the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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