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TMI Blog2015 (9) TMI 295X X X X Extracts X X X X X X X X Extracts X X X X ..... mbapu Patil Sahakari Sakhar Karkhana Ltd., (Unit NO. 2), Wategaon, Tal-Walwa, Dist-Sangli, being the amount equal to 10%/5% of the value of electricity sold during the period from April, 2007 to August, 2010, under provisions of Section 11A(2) of the Central Excise Act, 1944 read with Rule 14 of the Cenvat Credit Rules, 2004. ii. Interest on the above amount shall be paid by M/s. Rajarambapu Patil SSK Ltd. Unit No. 2 Wategaon, under Section 11AB of the Central Excise Act, 1944, read with Rule 14 of the Cenvat Credit rules, 2004. iii. I impose a penalty of Rs. 1,69,89,466/- (Rupees One crore Sixty Nine lakhs Eighty Nine Thousand Four Hundred and Sixty Only) on M/s.Rajarambaput Patil Sahakari Sakhar Karkhana Ltd., (Unit NO. 2) Wategaon, Tar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of value of exempted electricity generated and supplied in term of Rules 6(3) Cenvat Credit Rules, 2004. 2. Shri J.N. Somaiya, Ld Counsel for the appellant submits that in the manufacture of Sugar and Molasses from sugar cane Bagasse is generated. The said bagasse burnt in the boiler as fuel and steam is generated. The steam is used in the turbine for generation of the electricity. The said electricity partly used in the factory for running plant and partly sold to M/s MSEB. It is his submission that for the generation of electricity no excisable input is used and only bagasse and DM water is used, which are not Cenvatable inputs. Therefore demand of 10%/5% as the case may be in terms of Rule 6(3) of Cenvat Credit Rules, 2004 is not sustai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns Mill judgment relied upon by the Commissioner in the impugned orders have no relevance as Geetanjali Woolens Mill's judgment was in respect of custom duty and was only concerned with the 'tariff item and not with respect to the 'excisable goods' as defined under Section 2(d) of Central Excise Act, 1944. The bagasse, which emerges as a residue of sugarcane, admittedly, is a waste product and this bagasse is used in boiler as a fuel for generation of steam for running the turbine and for boiling the juice for the manufacture of sugar. Turbine generates electrical energy which is used for running the plant and machinery and surplus energy is sold to the U.P. Power Corporation Ltd. Furthermore, bagasse is used as fuel in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court has held that the electrical energy generated from bagasse is not covered under Chapter 27. Therefore, electrical energy is not an excisable goods nor is it exempted as defined in Section 2(d) of the Act. It was further held that the electricity is not an excisable goods under section 2(d) of the Act, hence Rule 6 of the Cenvat Credit Rules is not applicable as held by the Hon'ble Supreme Court in the case of Solaris Chemtech Ltd. Therefore, relying on the decision of the Hon'ble Allahabad High Court, we hold that the respondents are not required to reverse an amount of 10% of the value of electricity sold by the respondents to MSEDCL. Therefore, we do not find any infirmity in the impugned order and the same is upheld. The ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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