2013 (4) TMI 180

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..... g of sugarcane is necessary to extract cane sugar juice which in turn is processed for production of sugar and molasses. - Bagasse is the waste product left after the crushing of sugarcane. Therefore, by no stretch of imagination it can be said that the assessee possibly could have maintained separate accounts for the inputs for production of sugar and molasses (excisable item) and bagasse. Mor .....

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..... re of sugar during crushing of sugarcane by-product/waste - bagasse emerges. The department was of the view that since the appellant have not maintained separate account and inventory of the inputs used in or in relation to manufacture of dutiable final products - sugar and molasses and exempted final product - bagasse, in accordance with the provisions of Rule 6(3) of Cenvat Credit Rules, 2004, t .....

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..... Advocate, the learned Counsel for the appellant, pleaded that the issue involved in this case stands decided in their favour by the judgment of the Tribunal in the case of CCE, Meerut-I v. Shakumbari Sugar Allied Industries Ltd. reported in 2004 (176) E.L.T. 819 (Tri.-Del.), and that the Civil appeal filed by the Department against this judgment of the Tribunal has been dismissed by the Hon ble .....

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..... 2008, the definition of excisable goods in Section 2(d) of the Central Excise Act has been amended as a result of which the bagasse emerging as a by-product in sugar mills would be treated as an exempted excisable goods and in respect of its clearances an amount equal to 10% of the sale value would be chargeable, if the Cenvat credit on the common inputs has been taken. He, therefore, pleaded tha .....

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..... t make any difference in the facts and circumstances of the case. Moreover, neither the show cause notice nor the impugned order in appeal mentions as to which common Cenvat credit availed inputs have been used in manufacture of sugar and, molasses (dutiable final product) and bagasse (exempted final product). Since Bagasse emerges at sugarcane crushing stage, there is no possibility of any inputs .....

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