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TMI Blog2019 (12) TMI 332X X X X Extracts X X X X X X X X Extracts X X X X ..... ntegra - The Hon'ble Supreme Court in UNION OF INDIA OTHERS VERSUS M/S. HINDUSTAN ZINC LTD. [ 2014 (5) TMI 253 - SUPREME COURT ] taking the meaning and the scope of the amended definition of excisable goods under Section 2(d) of the Central Excise Act, 1994 held that bagasse which emerges as the waste and residue as a result of the process carried out on the raw material cannot be considered to fall under the scope of definition of manufacture under Section 2(f) and accordingly, Rule 6 of CENVAT Credit Rules, 2004 shall not apply. No merit in the impugned order - appeal allowed - decided in favor of appellant. - HON BLE DR. D.M. MISRA, MEMBER (JUDICIAL) AND HON BLE MR. S. SRIVASTAVA, MEMBER (TECHNICAL) Shri Prasad Paranjape, Advocate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6(3) of the CENVAT Credit Rules, 2004. The total demand for the said period was ₹ 4,75,27,858/- which, on adjudication, was reduced to ₹ 2,47,38,827/-. Hence, the present appeal. 3. Learned Advocate Shri Prasad Paranjape for the appellant submits that before charging the main inputs namely, iron ore and coke, the same are screened to eliminate the fines and breezes which are not of required size, hence cannot be fed to the blast furnace. It is his contention that this is waste products and hence cannot be subjected to the Rule 6(3) of CENVAT Credit Rules, 2004. It is his contention that the issue is no more res integra and covered by the judgment of the Hon'ble Supreme Court in the case of Union of India Vs. Hindustan Zinc L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the purposes of this clause, goods includes any article, material or substance which is capable of being bought and sold for a consideration and such goods shall be deemed to be marketable. 7. As per the aforesaid explanation, goods would now include any article, material or substance capable of being bought or sold for consideration and as such goods shall be deemed to be marketable. Thus, it introduce the deeming fiction by which certain kind of goods are treated as marketable and thus excisable. 8. However, before the aforesaid fiction is to be applied, it is necessary that the process should fall within the definition of manufacture as contained in Section 2(f) of the Act. The relevant portion of amended Section 2(f) reads as under : S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hapter notice. In the absence thereof this deeming provision cannot be attracted. Otherwise, it is not in dispute that Bagasse is only an agricultural waste and residue, which itself is not the result of any process. Therefore, it cannot be treated as falling within the definition of Section 2(f) of the Act and the absence of manufacture, there cannot be any excise duty. 11. Since it is not a manufacture, obviously Rule 6 of the Cenvat Rules, 2004, shall have no application as rightly held by the High Court. 7. Following the aforesaid precedent, we do not find merit in the impugned order. Consequently, the same is set aside and the appeal is allowed with consequential relief, if any, as per law. (Operative portion of the order pronounced in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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