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TMI Blog2022 (2) TMI 617X X X X Extracts X X X X X X X X Extracts X X X X ..... umption and inventory of inputs meant for use in the manufacture of both dutiable and exempted final products so as to restrict the cenvat credit availed only to the proportionate quantity of inputs used in the dutiable final products. Neither had they paid an amount equal to 6% / 7% of the value of the exempted final product for their clearances made during the period from 01.12.2014 to 30.06.2015. Show cause notice was issued proposing to recover the wrongly availed cenvat credit in terms of Rule 6 (3) and Rule 14 of Cenvat Credit Rules, 2004 read with Section 11A (1) of Central Excise Act, 1944 along with interest and also proposing to impose penalties. After due process of law, the original authority confirmed part of the demand, intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 04 is not applicable. 4. He submitted that Hon'ble Allahabad High Court in the case of Balrampur Chini Mills Ltd. Vs UOI - 2019 (5) TMI 972 has held that Bagasse cannot be considered as final product consciously manufactured by an assessee. 5. In the case of Arignar Ana Sugar Mills Vs CGST & CE Tiruchirapalli 2019 (8) TMI 419 CESTAT Chennai, similar view was taken. He prayed that the appeal may be allowed. 6. Ld. A.R Shri Arul C. Durairaj appeared for the department. He supported the impugned order. 7. Heard both sides. 8. The issue to be decided is whether the appellants are liable to pay 6% / 7% of the value of Bagasse sold by them for consideration. 9. The Hon'ble Supreme Court in the case of UOI Vs DSCL Sugar Ltd. (supra) had an o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacture'. Here again, fiction is created by including those goods as amounting to manufacture in respect of which process is specified in the Section or Chapter notices of the First Schedule. 10. 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 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 manu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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