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TMI Blog2015 (5) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... r using mineral fuels, mineral oils and products of their distillation, bituminous, substances, mineral waxes etc., the energy so generated from bagasse is not be covered by Chapter 27 of the Central Excise Tariff Act, 1985. Therefore, there cannot be denial of CENVAT credit. It was the opinion of the Court that the electricity energy not being excisable goods nor its is exempted goods in terms of Rule 2(d) of the CENVAT Credit Rules, 2004, the appellant cannot be denied of the CENVAT credit on the common input used. - Decided in favour of assessee. - E/391/2012, E/511/2012, E/40316/2014 - Final Order No. 40422-40424 / 2015 - Dated:- 16-4-2015 - Hon ble Shri D.N. Panda, Judicial Member And Hon ble Shri R. Periasami, Technical Member,JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of final products ends with the emergence of those final pro-ducts along with inevitable wastes. Their usage cannot be traced beyond the first degree. The same inputs cannot be considered to have been utilized or used even indirectly in the manufacture of disputed item viz., bio-compost fertiliser, especially under the factual circumstances that the same came to be manufactured only by adding those two waste materials together. May be those two waste materials contained the trace of certain chemicals with the characteristics of original inputs. That itself cannot be taken to mean that the product emerged out of those wastes was also manufactured by using those cenvated credit inputs. 16. As rightly contended by the learned counsel for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... waste products viz., press-mud and spent wash and is marketed by the assessee. What is to be seen is as to whether such final product had emerged by using any cenvated inputs either in or in relation to such manufacture of final product. As we have already found that no cenvated inputs or chemicals were used either in or in relation to the manufacture of such exempted final product viz., bio-compost fertiliser, we are of the view that demand made by the Revenue is unsustainable. 2. Against the submission above, Revenue does not have any logical reason to bring out a difference to the finding made by the Hon ble Madras High Court. Therefore, this appeal is allowed. E/511/2012 3. Learned counsel submits that the outcome of the proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner, Central Excise, Lucknow vide letters dated 30-1-2013 and 21-2-2013, respectively. In order to become any goods to be an excisable goods , it has to fulfil the following conditions : (1) Goods must be manufactured; (2) Must be specified in the First or Second Schedule of the Central Excise Tariff, (3) It must be subjected to tariff. 26. Admittedly, none of these conditions are attracted in the instant case insofar as electrical energy, which is mentioned in Chapter 27 of the Central Excise Tariff Act, covers only those electrical energy which are generated from mineral fuels, mineral oils and products of their distillation, bituminous, substances, mineral waxes, etc. The electrical energy generated from Bagasse is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mon use of input. 8. Paragraphs 18 and 29 of the judgment of Hon ble High Court of Allahabad in Balrampur Chini Mills Ltd. Vs. Union of India 2014 (300) ELT 372 (All.) provides answer to the above question allowing CENVAT credit. The said paragraphs insofar as that is relevant for this case are reproduced for convenience of reading:- 18. A perusal of Rule 6(1) clearly shows that the manufacturer has to manufacture both dutiable goods as well as exempted goods. Since bagasse is not manufactured goods but is a waste product which emerges/comes into existence in the process of manufacture of sugar, it is not manufacture of exempted goods. **** ****** ****** ******* ***** 29. Thus, it is not in dispute that the bagasse is an agricul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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