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TMI Blog2019 (8) TMI 419X X X X Extracts X X X X X X X X Extracts X X X X ..... R The issue is whether the appellant is liable to pay an amount equivalent to 10%/6%/5% on the clearances of bagasse. 2. On behalf of the appellant, learned consultant Shri K. Mani submitted that the appellant is engaged in manufacture of sugar and is registered with the department. As part of the manufacturing process bagasse is generated as waste. The department proposes to consider the said b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble Allahabad High Court in M/s. Balrampur Chini Mills Ltd., Vs Union of India reported in 2019 (5) TMI 972 - Allahabad High Court. 2. The learned Authorised Representative Shri B. Balamurugan, AC (AR) supported the findings in the impugned order. 3. Heard both sides. 4. The department has raised the demand alleging that the appellant is manufacturing bagasse and as per Explanation inser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an agricultural waste and residue which itself is not the result of any process and in the absence of manufacture, there cannot be any excise duty. The Hon'ble Apex Court further clarified that since it is not a manufacture, Rule 6 of Cenvat Credit Rules shall have no application. For the better appreciation Rule 6 is reproduced herein below:- "Rule 6(1) The Cenvat credit shall not be allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd where such invoices value is not available such value shall be determined by using reasonable means consistent with the principles of valuation contained in Excise Act and Rules made there-under. The words "used in or in relation to the manufacture" clarified that prior to 01.03.2015 this rule is invokable only where there is the activity of manufacture. As already discussed above that the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mendment, there arises no liability upon the appellant to pay the duty as demanded for the period w.e.f. September, 2014 to February, 2015 in Appeal No.52211/2018 nor for the reversal of the credit as demanded for the period June, 2015 to March, 2016 in Appeal No.52210/2018." 5. The above said view has been approved by the Allahabad High Court in the case of M/s. Balrampur Chini Mills Ltd., (supr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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