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TMI Blog2023 (7) TMI 430X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of manufacture and in its absence nothing can be demanded from the appellant. It is not the case anywhere that after the amendment on 1.3.2015 by-products/ waste/residue have been included in the definition of manufacture and therefore in my view the provisions of amended Rule 6(3) or Rule 6(2) ibid has no application and resultantly the demand raised by the revenue cannot sustain. The pressmud, bagasse, boiler ash and sludge which emerged as waste or byproduct, fall outside the purview of Rule 6 ibid. Accordingly the impugned order is set aside and the Appeal filed by the Appellant is allowed. - Excise Appeal No. 85288 of 2021 - FINAL ORDER No: A/86085/2023 - Dated:- 11-7-2023 - MR. AJAY SHARMA, MEMBER (JUDICIAL) Shri J. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the appellant demanding amount of Rs.8,82,775/- i.e. the amount equal to 6% of sale value of Press mud, Boiler Ash sludge in terms of Rule 6(3) ibid alongwith interest and penalty. The Adjudicating Authority vide Order-in-Original dated 19.7.2019 confirmed the demand alongwith interest and penalty by relying upon the provision of Rule 6(1) ibid that was amended w.e.f. 1.3.2015 vide notification No.6/2015 CE9NT) dated 1.3.2015 and also the clarification, issued vide circular dated 25.4.2016, which according to him, is binding on the department. When the appeal was filed by the appellant, the same was rejected by the learned Commissioner (Appeals) vide impugned order dated 14.7.2020 in view of amendment to Rule 6 ibid vide notification d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned Chartered Accountant bagasse/pressmud emerged as waste during the crushing of sugar cane and during the crushing of sugarcane no cenvatable inputs are used and that the bagasse is further burned into boiler and thereafter boiler ash emerges which is also a waste. He further submitted that after purification/filtration of sugarcane juice, the waste remained is Pressmud. Therefore whatever products are in issue, are nothing but waste only. To strengthen his submission, learned Chartered Accountant cited the decision of this Tribunal in Appellant s own case in the matter of Excise Appeal No. 88942 of 2018; M/s. Purana SSK Ltd. vs. CCE ST, Nashik; Final Order No. A/85128/2020 dated 29.01.2020 in which the Tribunal on identical issue, al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtered accountant. The Hon ble Supreme Court in the matter of DSCL Sugar Ltd. (supra) while considering the amended definition of excisable goods and manufacture has laid down that that pressmud is agricultural waste of sugarcane and the waste residue of agricultural products during the process of manufacture of goods cannot be said to be result of any process. There is no manufacturing process involved in pressmud s production. Bagasse, pressmud and boiler ash are not goods but merely a waste or by-product therefore Rule 6 of the Cenvat Rules shall have no application in the such cases as they are bound to come into existence during the crushing of the sugarcane and are an unavoidable agricultural waste. 7. The amendment dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods, as the nature of bagasse or pressmud or boiler ash remains that of a waste/residue and is not in effect a final product . In the matter of Gujarat Mineral Development Corporation Ltd. vs. CCE ST, Vadodara-II; 2022(58) GSTL 49 (Tri-Ahmd) it has been held that once it is established that the product in question are by-product then it is settled that in respect of by-product demand under Rule 6 will not sustain. In the matter of Appeal No. E/86537/2018; M/s. Shivratna Udyog Ltd. vs. Commr, CGST CX, Pune-II, vide Order No. A/87964/2018 dated 20.11.2018 this Tribunal has gone to the extent of holding that no duty can be demanded even on the electricity generated through waste product. The relevant paragraph of the said decision is as un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant. According to learned counsel the said circular has been treated as non est by subsequent circular dated 7.7.2022 a copy of which has also been placed on record. I have gone through the same and it is clear that the said circular i.e. circular dated 25.4.2016 has been rescinded by another circular being No.1084/05/2022-CX, dated 7.7.2022 issued by Central Board of Indirect Tax Customs (CBIC) in view of the decision of the Hon ble Supreme Court in the matter of Union of India vs. M/s. Indian Sucrose Limited vide order dated 4.3.2022 in S.L.P. (C) No. 1700 of 2021 by which the Hon ble Supreme Court dismissed the Special Leave Petition filed by Union of India. The relevant portion of the said order of Hon ble Supreme Court is re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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