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TMI Blog2019 (5) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... ethyl alcohol and other excisable goods falling under chapter 17, 22 of Central Excise Tariff Act, 1985. Alleging that the appellant used inputs in the manufacture of dutiable products, namely, 'sugar molasses' and 'denatured spirit' and exempted products viz. 'rectified spirit', ethanol, absolute alcohol, fly ash, etc. and they cleared 'organic manure' which is manufactured out of mixing of exempted by-products i.e. press mud and spent wash, but failed to comply with the provisions of Rule 6(3) of CENVAT Credit Rules, 2004, show cause notice was issued demanding 10%/5% of exempted 'organic manure' amounting to Rs.30,14,852/- with interest and proposal for penalty. The adjudicating authority dropped the proceedings against the appellant. Ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... more res integra for the reason that this issue has been settled by the Hon'ble Bombay High Court in the matter of Rallis India Ltd. v. UOI (supra) wherein the Hon'ble Bombay High Court held thus : 26. In the present case, the mother liquor arising in the manufacture of gelatin is admittedly a waste on which no excise duty is payable. In spite of the fact that no excise duty is payable on the clearance of waste mother liquor, in view of Rule 57D, the petitioner is entitled to avail entire credit of duty paid on HCL which is used as input in the manufacture of gelatin. In other words, in the present case, the petitioner is not required to reverse the credit of duty on HCL at the time of clearance of the waste mother liquor and consequentl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in these appeals and we are of the view that impugned orders are not sustainable. The impugned orders are set aside and the appeals are allowed." 7. Also we find that the Hon'ble Supreme Court in Union of India v. DSCL Sugar Ltd [2015 (332) ELT 769 (SC)], after analyzing the provision of Section 2(d) and Section 2(f) of Central Excise Act, 1944, post amendment, observed as under: "9. The Revenue sought to cover the case under sub-clause (ii) as per which the process which is satisfied in relation to any goods in the Section or Chapter notices of the First Schedule to the Central Excise Tariff Act, 1985 would amount to 'manufacture'. Here again, fiction is created by including those goods as amounting to manufacture in respect of which pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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