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TMI Blog2011 (11) TMI 251X X X X Extracts X X X X X X X X Extracts X X X X ..... eal against the decision in the impugned order holding that the CENVAT Credit of Rs.4,01,981/- (Rupees Four Lakhs, One Thousand, Nine Hundred and Eighty One only) for Service Tax paid on transportation services utilized for transportation of Press Mud and Ash, which arise as a byproduct, by the respondent to the fields of farmers during the period January 2006 to March 2008 is admissible. 2. Nobo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not been sold to the farmers on the ground that there is no evidence for this conclusion. 5. I have considered the submissions made by the ld.Authorised Representative for the Department. 6. For coming to the conclusion that the CENVAT Credit is admissible, the observations of the Commissioner are as under: "2. The impugned order dt.2.4.09 has been passed on Show Cause Notice dt.26.9.08 issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the factory. Primary issue (point) for determination is whether the Service Tax paid on outward transportation of waste products arising in the manufacture of final dutiable products (viz. sugar and molasses) can be treated as input service. The issue is primarily a question of law involving interpretation of the term input services as defined under the CENVAT Credit Rules, 2004. 3. Input servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inal (dutiable) goods. Such outward transportation of waste products is, prima facie, input service (albeit indirectly) in relation to manufacture of final goods. However, situation would have been different where the assessee sells such waste for a price but then there is no such claim that waste is sold." 7. Disposal of Press Mud and Ash, as observed by ld. Commissioner (Appeals), is a statutor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the place of removal. Moreover, Press Mud and Ash are used by farmers, who supplied the sugarcane for manufacture of sugar. If this is the case, sugarcane is definitely is a raw material for sugar and Press Mud and Ash are used as manure for growing sugarcane and therefore utilization of Press Mud and Ash are used for production of raw material which can be definitely said to be related to manu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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