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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 ..... eevi C.S, Member (Judicial) For the Appellant: Shri K. Mani, Cons. For the Respondent: Shri B. Balamurugan, AC (AR) ORDER 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 bagasse as exempted goods manufactured by the appellant and thus demand has been made as per Rule 6(3) of Central Excise Rules alleging that the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accordance of Rue 6 (3) of CCR, 2004. 8. The perusal of case laws as impressed upon by the appellant reflects that the issue herein is no more res integra. The Hon ble Apex Court in the case of Union of India Vs DSCL Sugar Ltd., - 2015 (322) E.L.T.769 has held that products like bagasse and press-mud do not qualify the definition of section 2F of CEA and as such are not being a manufacture. These are only 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 rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d below:- (d) exempted goods means excisable goods which are exempt from the whole of the duty of excise leviable thereon, and includes goods which are chargeable to nil rate of duty .. (h) final products means excisable goods manufactured or produced from input, .. 8.2 Since the main condition for Rule 6 is still , obligation of a manufacturer or producer of final products it doesn t extend to by-products released during the process of manufacture of main product that too without involvement of any such activity, which may be called as manufacture . 9. In view thereof, I am of the opinion that irrespective of the amendment, there arises no liability upon the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X
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