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TMI Blog2018 (11) TMI 1513X X X X Extracts X X X X X X X X Extracts X X X X ..... ated through solar power, hydro power, wind power etc. For post amendment period it can be said that the duty demand made against such sale of surplus electricity manufactured through waste product is not sustainable in law - appeal allowed - decided in favor of appellant. - Appeal No. E/86537/2018 - A/87964/2018 - Dated:- 20-11-2018 - Dr. Suvendu Kumar Pati, Member (Judicial) Shri J.N. Somaiya, Advocate for the appellant Shri D.S. Chavan, AC (AR) for the respondent ORDER Explanation 1 inserted to Rule 6(1) of Cenvat Credit Rules 2004 with effect from 01.03.2015 is held to be applicable to the electricity sold by the appellant that was being generated from bagasse, a waste product of sugar manufacturing and impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e were neither input nor input service used for generation of electricity and the same had attained finality in the decision of the Hon'ble Supreme Court reported in 2015 (322) ELT 769 (SC) in the case of DSCL Sugar Ltd. case. It was also held that since provision of Rule 6 is not for bagasse, the same will not apply to electricity generated by using bagasse only when no other input is used. Ld. Counsel for the appellant further submitted that department had not produced any evidence to prove use of any common input/ input services of the manufacture of dutiable goods for non-excisable electricity production for which he prays to set aside the order of the Commissioner (Appeals). He placed his reliance on the reported judicial decisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re mostly related to the incidence prior to the insertion of proviso-1 to Cenvat Credit Rules wef. 01.03.2015 except Jakarya Sugars Ltd. Admittedly electricity, though not found in tangible form, is classifiable under Tariff item no. 27160000 of Central Excise Tariff Act, 1985. But it is a non-excisable goods and the process of generation of electricity though a manufacturing process is dutiable if it is generated from mineral oils, bitumen substance, mineral waxes etc. and electricity generated from bagasse is not covered under Chapter 27 like electricity generated through solar power, hydro power, wind power etc. Therefore, as has been held by Hon'ble Allahabad High Court in Gularia Chini Mills (supra) electricity energy is not an e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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