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TMI Blog2022 (1) TMI 506X X X X Extracts X X X X X X X X Extracts X X X X ..... of CENVAT Credit Rules, 2004 - penalty under Rule 15(2) of the CENVAT Credit Rules, 2004 read with Section 11AC of Central Excise Act, 1944. HELD THAT:- The issue is no more res integra as the question as to whether bagasse is manufactured under the provisions of Section 2(f) of the Central Excise Act, 1944 or otherwise and the CENVAT credit availed on the inputs which are used for the manufacture of sugar has to be denied or otherwise has been settled by the apex Court in the case of UNION OF INDIA VERSUS DSCL SUGAR LTD. [ 2015 (10) TMI 566 - SUPREME COURT] where it was held that In the present case it could not be pointed out as to whether any process in respect of Bagasse has been specified either in the Section or in the Chapter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... read with provisions of Section 11A(2) of the Central Excise Act, 1944, I confirm the demand of i. ₹ 2,11,712/- (Rupees Two Lakhs Eleven Thousand Seven Hundred and Twelve only) equivalent to 10% or 5%, as the case may be, of the total value of exempted goods viz. Bagasse, Pressmud Compost Fertilizer, manufactured and cleared during the period from May, 2008 to July, 2010, on M/s. Loknete Balasaheb Desai SSK Ltd., Daulatnagar (Marali), Tal. Patan, Dist. Satara-415 211, as demanded under Notice to Show Cause cum Demand, bearing F.No. V(17)4-01/Adj/10-11/3534, dtd. 11.10.2010. ii. . 22.2 I confirm the demand of interest at appropriate rate, payable on the respective amounts confirmed as above, from the date the amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Excise Act, 1944. Whether the bagasse/press-mud can be considered as final products in terms of CENVAT Credit Rules, 2004? Whether the appellant was required to pay an amount equal to 5% of the value of the exempted goods i.e. bagasse/press-mud, as pre Rule 6(3) of CENVAT Credit Rules, 2004, as the common inputs/input services were used for the manufacture of both dutiable goods(sugar and molasses) and exempted goods (bagasse/ press-mud) and the appellants were not maintaining separate accounts for the inputs/input services used in dutiable goods and exempted goods? Whether the inputs, capital goods, input services are used in the manufacture of dutiable sugar/molasses as well as exempted bagasse/ pres-mud? Whether the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y under the Central Excise Act, 1944, as other products . These show cause notices were issued to the respondents in terms of the provision contained in Rule 6(3) of the Cenvat Credit Rules, 2004 demanding various amounts. The said show cause notices were challenged by the respondents filing writ petitions in the High Court of Allahabad. The High Court has allowed these writ petitions holding that Bagasse being a waste and not a manufactured product, no duty is payable thereupon. For arriving at this conclusion, the High Court also have relied upon the judgment of this Court in Balrampur Chini Mills Ltd. in C.A. No. 2791 of 2005 decided on 21-7-2010 [2015 (320) E.L.T. A258 (S.C.)]. 6. The aforesaid judgment was pronounced by this Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Central Excise Tariff Act, 1985 (5 of 1986) as amounting to [manufacture; or] (iii) which in relation to the goods specified in the Third Schedule, involves packing or repacking of such goods in a unit container or labelling or re-labelling of containers including the declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer; and the word manufacture shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in their production of manufacture on his own account; 9. The Revenue sought to cover the case under sub- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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