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TMI Blog2019 (12) TMI 421X X X X Extracts X X X X X X X X Extracts X X X X ..... licable in case of removal of pressmud generated during the manufacturing of sugar as the assessee is not maintaining separate accounts? 3. The facts of the case in brief are as follows. The Appellants are engaged in manufacture of Excisable goods viz. Sugar, Molasses which are cleared on payment of duty. During the course of manufacture of sugar and molasses, by product pressmud emerges which is a waste/residue by product/ refuse. The period involved in the Appeal is from January, 2016 to March, 2017. The assessee are availing Cenvat Credit of duty paid on various inputs, capital goods and service tax paid on various input services in terms of Cenvat Credit Rules. According to Revenue, pressmud is sold by the Appellant but they ae not pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itled as Loknete Balasaheb Desai SSK Ltd. vs. CCE, Kohlapur. According to learned counsel, pressmud is nothing but waste of the finished goods i.e. Sugar and Molasses and therefore Cenvat credit is not required to be reversed. He cited number of decisions starting from Hon'ble Supreme Court upto this Tribunal, in support of his submission that reversal of Cenvat Credit under Rule 6 is not required in respect of waste or byproduct or refuse generated during the process of manufacturing. The list of the cases cited by learned counsel are as under:- (i) M/s. Balrampur Chini Mills Ltd. vs. UOI; 2019(5)TMI 972 (All.HC) (ii) M/s. Athani Sugars Ltd. vs. Commr.CGST; 2019(2) TMI 379-Ces.-Mum (iii) CCT, Pune-II vs. Chhatrapati SSK Ltd.; 2019(2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f goods cannot be said to be result of any process. There is no manufacturing process involved in pressmud's production. "Bagasse, pressmud and composed fertilizer" is not 'goods' but merely a waste or byproduct therefore Rule 6 of the Cenvat Rules shall have no application in the present case and they are bound to come into existence during the crushing of the sugarcane and are an unavoidable agricultural waste. The amendment dated 1.3.2015 in Rule 6 CCR has wrongly been relied upon by both the authorities below in coming to the conclusion that the assessee is liable to reverse the Cenvat Credit availed by them. As per Rule 6(1) ibid read with Explanation-1, non-excisable goods which are manufactured by the manufacturer in his factory will ..... X X X X Extracts X X X X X X X X Extracts X X X X
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