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TMI Blog2012 (8) TMI 1005X X X X Extracts X X X X X X X X Extracts X X X X ..... ssible 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 - appeal allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... arguments of the Revenue, held that the press mud and sludge is a waste and also non-excisable and the demands which were confirmed on the same ground set aside. 4. The contention of the Revenue is that in the Central Excise Tariff Act bagasse is specifically mentioned and mentioned and attracting nil rate of duty and press mud is also excisable goods and also manufactured products and the same are classifiable under Chapter-heading No. 23032000 of the Tariff. The Revenue also relied upon the decision in the case of Commissioner of Income Tax vs. N.C. Budhraja and Co. - AIR 1993 SC 2529 to submit that the word "produce" or "manufacture" has to be understood in the normal connotation the sense in which it is understood i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of Rule 6 in respect of bagasse, we find that the issue is now settled by the decision of Hon'ble High Court in the case of Balrampur Chini Mills Ltd. (supra). The Hon'ble High Court after taking into consideration the decision of the Supreme Court in the case of CCE vs. Shakumbhari Sugar and Allied Industries Ltd. (supra) held that bagasse generated from the crushing of the sugarcane which is neither manufactured goods nor manufactured final product, but it is a residue/waste and the demand by invoking the provisions of Rule 6 is not sustainable. Further, we find that the Tribunal in the case of Indian Potash Ltd. (supra) after taking into consideration the decision of the Hon'ble Supreme Court in the case of Shakumbhari Suga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d upon by the applicant where the Tribunal after taking into consideration the decision of Rallies India Ltd. vs. Union of India - 2009 (233) ELT 301 (Bom.) and other decisions held that the demand of 5%/10% on press mud, which are in the nature waste, is not sustainable and held as under:- "5. I have considered arguments from both sides, the case records as well as the cite 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 amounts specified is nil. The Explanation to Section 2(d) is a deeming clause w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 input 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 "exempted goods", though the same cannot be treated as 'excisable goods" for the reasons stated in paragraph 5 above. The question raised in thi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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