cenvat credit

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..... cenvat credit
Query (Issue) Started By: - harpreet arora Dated:- 23-11-2010 Last Reply Date:- 20-6-2011 Service Tax
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Service Tax
i want to know whether baggase can be treated as excisable product. The issue is that in case of suagar factories, they are manufacturing sugars from sugarcane. Two situations rae there i. the bagasse generated as bye product they are seling outs .....

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..... ide the factory. ii. bagasse so generated are being used within factory thermal plant and steam is generated steam so generated iss used in the production of electricity which is partly captively consumed within factory in sugar production activity and remaining part is used in workers quarters of the factory employee and if remains the part is sold to the KPTCL for the public usage. Whether they .....

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..... are required to reverse the cenvat credit on that prt of electricity which is sold outside under Rule 6(3) of CCR 2004. I also want to know that they are doing a very good work of generating power from waste like baggase for the publics use so should we not take leanient view for this and not demand the reversal of cenvat credi. since we are spending so much money to promote nonconventional sourc .....

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..... e of energy and these sugar factory people are also doing the little bit same although for their own purpose. Reply By Mukesh Kumar: The Reply: After amendment to section 2(f) of the Central Excise Act, 1944, any thing which ever is sold would be liable to duty of excise irrespective of the fact that it is marketable or not. In the absence of more details of bagasse, it is difficult for me to c .....

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..... omment further.
Discussion Forum - Knowledge Sharing .....

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