2013 (2) TMI 415

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..... her and converted into bio-compost and cleared without payment of duty - Held that:- Following the decision in case of Manakpur Chini (2012 (7) TMI 474 - CESTAT, NEW DELHI) that the bio-compost cleared by the sugar manufacturer is not liable to duty. In favour of assessee - E/2145/04 - A/857/12/EB/C-II - Dated:- 17-9-2012 - S.S. Kang And P.R. Chandrasekharan, JJ. Appellant Rep by: Sh .....

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..... e adjudicating authority confirmed the demand. The Commissioner (Appeals), on appeal filed by the appellant, set aside the demand and held as under:- 4. I have carefully gone through the case records and the various submissions made by the appellants. I find that molasses is used in manufacturing process of fermentation and distillation and process is complete when Ethyl Alcohol/rectified s .....

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..... ugar from sugar cane and as such these could have been cleared without payment of duty and used in the manufacture of compost fertilizer without reversing Modvat Credit availed on molasses in terms of provisions of Rule 57D as indicated above. Thus the Modvat Credit is held to have been correctly availed by the appellants and there cannot be any case of recovery of any amount as per impugned order .....

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