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TMI Blog2015 (10) TMI 566X X X X Extracts X X X X X X X X Extracts X X X X ..... 2(f) of the Act and the absence of manufacture, there cannot be any excise duty. - Since it is not a manufacture, obviously Rule 6 of the Cenvat Rules, 2004, shall have no application as rightly held by the High Court. - Since Bagasse is held not to be result of any manufacture - Decided against Revenue. - Civil Appeal No. 3947 of 2013 - - - Dated:- 24-7-2015 - A.K. Sikri and Rohinton Fali Nariman, JJ. Shri K. Radhakrishna, Senior Advocate, Ms. Sunita Rani Singh, Ms. B. Sunita Rao, R.K. Verma, B. Krishna Prasad, Ms. Neelam Chand and Anurag, Advocates, for the Appellant. Shri S.K. Bagaria Rajiv Dutta, Senior Advocates, Manish K. Bishnoi, K. Ajit Singh, Narinder Verma, Praveen Kumar, Vinay Garg, Dr. Sushil Balwada, Rajesh Kuma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to whether it is manufactured product and falls within the definition of manufacture as contained in Section 2(f) of the Central Excise Act. 2. The facts in brief are as under : 3. Respondents herein are manufacturer of sugarcane and molasses falling under Chapter sub-heading 1701 11 90 and 1703 10 00 respectively, of the First Schedule to the Central Excise Tariff Act, 1985. In the process of manufacture of sugar, sugarcane is crushed, its juice is extracted and Bagasse emerges as residue/waste of sugarcane. 4. It is not in dispute that Bagasse is otherwise classified under Chapter sub-heading No. 2303 20 00 of the First Schedule to the Central Excise Tariff Act, 1985 and attracts nil rate of duty. 5. However, show cause noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rketable. 7. As per the aforesaid explanation, goods would now include any article, material or substance capable of being bought or sold for consideration and as such goods shall be deemed to be marketable. Thus, it introduce the deeming fiction by which certain kind of goods are treated as marketable and thus excisable. 8. However, before the aforesaid fiction is to be applied, it is necessary that the process should fall within the definition of manufacture as contained in Section 2(f) of the Act. The relevant portion of amended Section 2(f) reads as under : Section 2(f) - manufacture includes any process - (i) incidental or ancillary to be completion of a manufactured product; (ii) which is specified in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly an agricultural waste and residue, which itself is not the result of any process. Therefore, it cannot be treated as falling within the definition of Section 2(f) of the Act and the absence of manufacture, there cannot be any excise duty. 11. Since it is not a manufacture, obviously Rule 6 of the Cenvat Rules, 2004, shall have no application as rightly held by the High Court. Civil Appeal No. 9332 of 2013 : CCE v. M/s. Saryoo Sahakari Chini Mills Ltd. 12. Since Bagasse is held not to be result of any manufacture, this appeal is also dismissed. 1. SLP(C) No. 3340 of 2013 : Union of India v. Haidergarh Chini Mills 2. SLP(C) No. 3342 of 2014 : Union of India v. Akbar Pur Chini Mills 3. SLP(C) No. 3344 of 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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