9911796707
TMI Blog2017 (9) TMI 1545X X X X Extracts X X X X X X X X Extracts X X X X ..... ) for the Respondent ORDER [ Order Per : Madhu Mohan Damodar ] 1. The facts of the case are that Nizam Deccan Sugars Limited, the appellants herein, are manufacturers inter-alia, of cane sugar and Cane Molasses. It emerged that assessee were also producing Bagasse and Press Mud attracting nil duty and selling the said products. Appellants were availing cenvat credit on various common inputs and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under various provisions of law. Original authority vide Order dated 28.02.2012 confirmed the demands of Rs. 1,32,921/- in respect of clearance of bagasse and Rs. 11,057/- in respect of clearance of Press Mud alongwith interest liability thereon and also imposed penalty of Rs. 1,43,978/-, under Rule 15 of Cenvat Credit Rules, 2004, read with Section 11 EC of Central Excise Act Order of the origin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . CCE, Allahabad reported at [2014(300)E.L.T 372 (All.)] which held that bagasse arising in the course of manufacture of sugar cannot be treated as excisable goods, it continues to remain waste and it does not become manufacture of final product for the purposes of rule 6 of Cenvat Credit Rules, 2004. The relevant portions of that judgment is reproduced hereunder for ready reference:- "Thus, it i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10, the circular of the Chief Commissioner, Central Excise, Lucknow as well as Circular of Central Board of Excise and Customs are liable to be quashed which is the basis for issuing the demand. In the impugned notice dated 27.09.2010, it has been mentioned that as per Rule 6 of the Cenvat Credit is availed on the inputs which are used in the manufacture of both dutiable and final products, then ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and therefore it cannot be treated as manufacture, hence Rule 6 of Cenvat Credit Rules, 2004 will not be applicable. We find that Press Mud is also a waste product similarly emerging during the manufacture of sugar, molasses, therefore the same ratio will also be applicable to press mud. 5. In view thereof, following the ratio laid down by Hon'ble Apex Court in the case of DSCL Sugar Limited (s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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