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TMI Blog2018 (9) TMI 245X X X X Extracts X X X X X X X X Extracts X X X X ..... leared on payment of duty. Therefore, the proper course of action is to remand the matter back to the original authority to examine the claims of the appellant in respect to each product and re-determine the amount of duty, if any, to be recovered from them after following principles of natural justice - appeal allowed by way of remand. - E/30717/2016, E/31203/2017 , E/31237/2017, E/31283/2017, E/30619/2018 - Final Order No. A/31070-31074/2018 - Dated:- 28-8-2018 - HON'BLE MR. P. VENKATA SUBBA RAO, MEMBER (TECHNICAL) Shri G. Prahlad, Advocate for the Assessee Smt B.V. Siva Naga Kumari, Commissioner/AR for the Revenue ORDER [ Order Per : P. V. Subba Rao ] 1. All these appeals are filed by the Assessee except ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the first appellate authority have been rejected and hence, these appeals are filed. As far as the appeal filed by the department is concerned, it is alleged in the appeal that the first appellate authority has wrongly demanded a duty @ 6% of value of exempted goods under Rule 6(3)(i) of CENVAT Credit Rules, 2004 which is beyond the scope of the show cause notice. The show cause notice had only demanded duty proportionate to the value of the exempted goods. Therefore, the appeal of the revenue is that the Order-in-Appeal No. VIZ-EXCUS-002-APP-043-17- 18, Dt. 21.08.2017 passed by Commissioner (Appeals) may be modified to this extent. The appellant/assessee readily agrees with the prayer of the revenue on this ground. 4. Learned Counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es which went into both dutiable and exempted goods. The appellant/assessee contended these assertions on the following grounds: a. They are maintaining separate books of accounts for each division and have been maintaining records of inputs availed in respect of each unit. b. The provisions to Rule 6 do not apply to the waste that is generated during the manufacture such as bagasse. c. The rectified spirit manufactured by them from molasses is an intermediary product for the final product denatured spirit although in some cases, they cleared the rectified spirit as such. d. The bio-earth or organic manure manufactured by them is also an excisable product and is being cleared on payment of excise duty. They had already reversed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, no input service needs to be reversed. He relied on the judgment in the case of DSCL Sugar Ltd [2015-(322)-ELT-(769)-(SC)] and argued that the bagasse is only an agricultural waste or residue produced during the manufacture of sugar and is not a product by itself, let alone being an intermediary product. Therefore, the question of reversing credit of input services which have gone into production of bagasse does not arise. Similarly, Hon ble High court of Madras in the case of EID Parry India Ltd [2013-(293)-ELT-(10)] held that press mud is nothing but impurities present in cane juice and hence, credit of duty need not be reversed on the inputs which have gone into the production of this press mud. They relied on their own case in Final ..... X X X X Extracts X X X X X X X X Extracts X X X X
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