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TMI Blog2014 (12) TMI 365X X X X Extracts X X X X X X X X Extracts X X X X ..... the said Rules 2004 is not sustainable. - Following decision of assessee's own previous case [2013 (12) TMI 928 - CESTAT CHENNAI] - Decided in favour of assessee. - Appeal No. E/S/40861-40862/2013 and E/41211-41212/2013 - FINAL ORDER No.40521-40522/2014 - Dated:- 11-8-2014 - Shri P.K. Das and Shri R. Periasami, JJ. For the Appellant : Shri J. Shankarraman, Advocate For the Respondent : Shri K.P. Muralidharan, Superintendent (AR) JUDGEMENT Per P.K. Das 1. Both the stay applications are arising out of a common order and hence they are taken up together for hearing. 2. After hearing both sides at length, we find that the appeals maybe decided at the stage of stay petition hearing as the issue has already been de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of M/s. The Amaravathi Co-operative Sugar Mills Ltd. Vs Commissioner of Central Excise, Coimbatore vide Final Order No.340, 441 342/2012, dated 30.03.2012. The relevant portion of the order in the case of M/s. The Amaravathi Co-operative Sugar Mills Ltd. (supra) is reproduced herein below: 5. I have considered the arguments from both sides, the case records as well as the cited case laws. The impugned goods namely, press mud and sludge are classifiable respectively under Central Excise Tariff Heading 2303 20 00 and 2303 30 00. Regarding such classification there is no dispute raised by either side. However, against the entries in both these headings, the duty amount specified is 'Nil'. The Explanation to Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sent case. Hence, till such time, no duty is specified in the First Schedule of the CETA, 'press mud' and sludge cannot be considered to be excisable goods. 6. The CENVAT Credit Rule 6(1) states that CENVAT credit shall not be allowed on such quantity of inputs used for manufacture of exempted goods. The expression exempted goods has been defined for the purpose of CENVAT Credit Rules in Rule 2(d) to mean excisable goods which are exempt from the whole of duty of excise leviable thereon and includes goods which are chargeable to 'Nil' rate of duty. As per this definition, the impugned goods, namely, 'press mud' and 'sludge' would be covered under the definition of exempted goods , though the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ual referred to by the learned SDR Shri Parmod Kumar, states that CENVAT credit is also admissible in respect of amounts of inputs contained in any of the waste, residue or by-product. It further states that the basic idea is that CENVAT credit is admissible so long as the inputs are used in or in relation to the manufacture of final products. 4. We find that the Tribunal after considering the Board's Manual and Board's Circular referred hereinabove held that 'sludge' is in the nature of by-product or waste and demand of amount of 10% on the value of the 'sludge' under Rule 6(1)(i) of the said Rules 2004 is not sustainable. 5. In view of that, the impugned order is set aside and the appeal filed by the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X
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