9911796707
TMI Blog2024 (1) TMI 821X X X X Extracts X X X X X X X X Extracts X X X X ..... . For the period from April 2016 to June 2017 the Adjudicating Authority confirmed the demand as proposed in the show cause notice along with interest and also imposed penalty of equal amount under Rule 6 of CENVAT Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944. Being aggrieved the assessee filed the appeal before the first Appellate Authority and vide the impugned Order-In-Appeal learned Commissioner (Appeals) has allowed the appeal. Being aggrieved, Revenue has filed the present appeal before the Tribunal. 2. Learned Departmental Representative appearing on behalf of the Revenue reiterates the grounds of appeal and submits that since separate accounts and inventories have not been maintained as required in term ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agasse, Dross and Skimmings of non-ferrous metals or any such by product or waste, which are non-excisable goods and are cleared for a consideration from the factory need to be treated like exempted goods for the purpose of reversal of credit of input and input services, in terms of Rule 6 of the Cenvat Credit Rules, 2004". 6. I find that the grounds of the Revenue was dealt with by the Tribunal in the case of Commissioner of Central Excise & Service Tax, Meerut-I V/s M/s Bajaj Hindusthan Sugar Ltd. wherein it was observed as under:- "3. I have heard the learned Departmental Representative on behalf of the Revenue. The respondents were manufacturers of sugar and molasses. They were removing Bagasse and Press Mud. The period covered is fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... effect of the assessee being under a legal obligation to pay duty on the non-excisable goods bagasse and press mud. We note that the explanations were considered by the Tribunal in the case of M/s.Simbhaoli Sugar Ltd. v. Commissioner of Central Excise, Noida vide final Order No.71567/2018 dated 19.07.218. 7. It was observed that inasmuch as according to Supreme Court's decision in the case of Union of India v. DSCL Sugar Ltd. referred (supra), bagasse has been held to be an agricultural waste or residue, there could be no manufacturing activity. The press mud has also been held to be a waste and not a manufactured product. As such the amendment made in the provisions of Rule 6 would not have any effect to the facts and circumstances of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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