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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 ..... cture 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 manufacture itself. Therefore, the respondents are eligible for CENVAT Credit. - Decided against the Revenue - E/963/2010 - - - Dated:- 21-11-2011 - MR. B.S.V. MURTHY, J Represented by: Shri R.Srova, A.R. for the Revenue. Per: Mr.B.S.V. Murthy: Revenue is in appeal 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 pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit of Service Tax paid on Goods Transportation Services relating to Outward transportation of Press Mud and Ash (waste products) arising during the manufacture of dutiable sugar and molasses. The ld. Original authority has taken a stand that such services cannot be termed input services under CENVAT Credit Rules, 2004 whereas the appellant assessee has contended that such services are well within the meaning of input services. The relevant admitted facts are (a) that Press Mud and Ash are waste product (non-excisable) arising in the process of manufacture of dutiable final products viz. sugar and molasses, (b) that Service Tax is payable and paid on outward transportation of such waste products to a place outside the factory. Primary iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Press Mud and Ash, as observed by ld. Commissioner (Appeals), is a statutory obligation and when there is a statutory obligation, it is required to be fulfilled and the respondents will not be allowed to continue to manufacture the goods as per Pollution Control Law. If Pollution Control law is not fulfilled, there will not be any manufacture. Therefore, the conclusion that the activity of transportation of Press Mud and Ash to the fields of farmers for disposal is an activity in or in relation to manufacture of sugar and molasses can not be found fault with. The question of place of removal will not come into picture in view of the fact that both Press Mud and Ash are of no use to the appellant and these are required to be disposed of. As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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