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TMI Blog2013 (12) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... l product, some waste or inevitable by-product emerges, the manufacturer, even if he wants to comply with the provisions of Rule 6 (2), cannot do so – Following Narmada Gelatines Limited vs. CCE, Bhopal [2008 (11) TMI 75 - CESTAT NEW DELHI] and Rallis India Ltd. vs. Union of India [2008 (12) TMI 46 - HIGH COURT BOMBAY] - provisions of Rule 6 (2) and 6 (3) would not apply – order set aside – Decided in favour of Assessee. - Appeal No. 4080/2010-EX(SM) - FO ORDER NO._58338/2013 - Dated:- 5-11-2013 - Ms. Archana Wadhwa, J. For the Appellant: Shri Alok Arora, Advocate For the Respondent: Shri M.S. Negi, DR JUDGEMENT Per Ms. Archana Wadhwa: The appellant are a sugar mill. They avail Cenvat credit of Central Excise Duty p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng but waste and hence the provisions of Rule 57 (CC) of Cenvat Credit Rules, 1944 would not be applicable, that this judgment of the Tribunal has been upheld by Hon ble Supreme Court vide judgment reported in 2005 (189) E.L.T. A62, that like bagasse, the press mud obtained is nothing but waste from the cane sugar which arises in course of cleaning of the same, that the product is not excisable and hence the provisions of Rule 6 (2) and 6 (3) of Cenvat Credit Rules, 2004 are not applicable, that the demand of Rs. 89,155/- and interest is not sustainable, He accordingly prays for the setting aside the impugned orders and allowing the appeal. 3.2 Shri M.S. Negi, learned Departmental Representative, pleaded that the judgment of the Tribunal/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the manufacture of dutiable final products or alternatively if he does not maintain such an account, he is required to pay an amount, as prescribed under Rule 6 (3), which in respect of the goods, in question, would be 10% of the value of the final product. I am of view that the requirement of Rule 6 (2) can be fulfilled only in respect of the final products which a manufacturer wants to manufacture and this requirement cannot be fulfilled in respect of inevitable waste or by product, as when in the manufacture of some final product, some waste or inevitable by-product emerges, the manufacturer, even if he wants to comply with the provisions of Rule 6 (2), cannot do so. It is in view of this, the Tribunal in the case of Narmada Gelatine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inal product cannot be brought under Rule 57CC. 17. We are conscious of the fact that what is in dispute is not the question as to whether bio-compost fertilizer is a final product or not, but on the other hand the question is as to whether such final product is liable to be brought under Rule 57CC of the Central Excise Rules or not. Press mud is an unavoidable and inevitable waste which arises when the cane juice obtained after crushing the sugarcane is further processed for manufacture of sugar. Press mud is nothing but impurities present in the cane juice. Likewise, spent wash is an inevitable waste product when molasses is treated to bring out ethyl alcohol or denatured spirit. Both press mud and spent wash are exempted from duty by v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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