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TMI Blog2019 (7) TMI 631X X X X Extracts X X X X X X X X Extracts X X X X ..... duced from input or using input service. This is because it is a natural by-product which does not involve any effort nor is it the primary intention of a sugar manufacturer to intend to manufacture press mud. Demand do not sustain, as it is a natural by-product - appeal allowed - decided in favor of appellant. - Excise Appeal No. 40758 of 2019 - FINAL ORDER NO. 40923/2019 - Dated:- 9-7-2019 - MR. P. DINESHA, MEMBER (JUDICIAL) Shri. P.C. Anand, Consultant for the Appellant Shri. S. Govindarajan, Authorized Representative for the Respondent ORDER By this appeal, the assessee-appellant is challenging the demand raised and confirmed by the First Appellate Authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s under : 6. I have considered the rival contentions, perused the documents placed on record and have also gone through the Order of this Bench (supra) relied on during the course of arguments. 7.1 Explanations 1 and 2 which are inserted vide amendment dated 01.03.2015, read as under : [Explanation 1. - For the purposes of this rule, exempted goods or final products as defined in clauses (d) and (h) of rule 2 shall include non-excisable goods cleared for a consideration from the factory. Explanation 2. - Value of non-excisable goods for the purposes of this rule, shall be the invoice value and where such invoice value is not available, such value shall be determined by usi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 Consequently, Bagasse, Dross and Skimmings of non-ferrous metals or any such by-product or waste, which are non-excisable goods and are cleared for a consideration from the factory need to be treated like exempted goods for the purpose of reversal of credit of input and input services, in terms of rule 6 of the CENVAT Credit Rules, 2004. 8.2 The above clarification includes items like Bagasse, Dross and Skimmings of non-ferrous metals or any such by-product or waste which are termed as non-excisable goods which find entry in Central Excise Tariff Act (CETA), 1985. The interpretations drawn by various courts including the Hon ble Supreme Court and also the clarifications issued by the Board only lead to the conclusion t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a natural by-product which does not involve any effort nor is it the primary intention of a sugar manufacturer to intend to manufacture press mud. 9. In view of the above, I am of the considered opinion that the amendment heavily relied on by the lower authorities does not cover waste and there being no change with regard to facts, the Order of this Bench in the appellant s own case (supra) is squarely applicable; the assessee is not liable to pay any duty and therefore, the demand is set aside. 10. The appeals are allowed with consequential benefits, if any, as per law. 8. The issue involved in the case on hand being identical, the above ratio squarely applies to the present case as we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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