9911796707
TMI Blog2013 (1) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... ted:- 17-7-2012 - Justice Ajit Bharihoke, Shri Rakesh Kumar, JJ. REPRESENTED BY : Shri S.S. Dabas, Advocate, for the Appellant. Shri Amresh Jain, AR, for the Respondent. [Order per : Justice Ajit Bharihoke, President]. The appellants are engaged in the manufacture of V.P. Sugar, molasses, rectified spirit and de-natured spirit falling under Chapter sub-heading No. 1701 11 90 and 1703 10 00 respectively of the First Schedule to the Central Excise Tariff Act, 1985. In the process of manufacture, bagasse is produced as a by-product which falls under Chapter sub-heading no. 2303 20 00 of the Central Excise Tariff Act and attracts nil rate of duty. The appellant was availing Cenvat credit in respect of the excise duty paid on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s heard for final disposal. 4. Ld. Counsel for the appellant has submitted that the impugned order as also the order-in-original suffers from infirmity as the order is based on incorrect appreciation of facts and wrong application of Rule 6 of the Cenvat Credit Rules, 2004. It is submitted that the Adjudicating Authority as also the Appellate Authority have failed to appreciate that the baggase is waste generated in the process of manufacture of sugar, molasses and spirits at the initial stage of crushing of sugarcane for extracting the juice. The sugarcane being agricultural produce is not subject to excise duty and the appellant did not avail Cenvat credit on the freight charges of sugarcane to the factory. Thus, it is contended that in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cerned with Rule 6(1), Rule 6(2) and Rule 6(3)(i) and 6(3)(ii) of Cenvat Credit Rules, 2004 which are reproduced thus : 6. Obligation of a manufacturer or producer of final products and a provider of taxable service. - (1) The CENVAT credit shall not be allowed on such quantity of inputs used in or in relation to the manufacture of exempted goods or for provision of exempted services, or input service used in or in relation to the manufacture of exempted goods and their clearance upto the place of removal or for provision of exempted service except in the circumstances mentioned in sub-rule (2). Provided that the CENVAT credit on inputs shall not denied to job worker referred to in rule 12AA of the Central Excise Rules, 2002, on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ules (1) and (2), the manufacturer of goods or the provider of output service, opting not to maintain separate accounts, shall follow [any one] of the following options, as applicable to him, namely : (i) pay an amount equal to six per cent of value of the exempted goods and exempted services; or (ii) pay an amount as determined under sub-rule (3A) or (iii) --------------------------------------------------------------------- 8. On bare reading of above rules, it is apparent that above referred rule shall be attracted only in a situation where manufacturer has availed Cenvat credit in respect of inputs which are used for or in relation to manufacture of final products. Thus, before confirming the demand, under Rule 6(3) (i) 6(3) ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
