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TMI Blog2019 (7) TMI 2013X X X X Extracts X X X X X X X X Extracts X X X X ..... lp does not fall under the category of manufactured product of the appellant and therefore the question of reversal of the Cenvat credit equivalent to 6% of value of such clearances does not arise. This Tribunal in its final decision in the case of KICHHA SUGAR COMPANY LTD. VERSUS CGST CC C.E., DEHRADUN [ 2018 (10) TMI 1151 - CESTAT NEW DELHI] has held Since the main condition for Rule 6 is still, obligation of a manufacturer or producer of final products , it doesn t extend to by- products released during the process of manufacture of main product that too without involvement of any such activity, which may be called as manufacture. The order-in-original is without any merit and same is set aside. The appeal is accordingly all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-Rule (3) of Rule 6 of the Cenvat Credit Rules cannot be resorted to. The relevant extract of the Hon ble Supreme Court judgment is reproduced here below : - 7. As per the aforesaid explanation, goods would now include any article, material or substance capable of being bought or sold for consideration and as such goods shall be deemed to be marketable. Thus, it introduce the deeming fiction by which certain kind of goods are treated as marketable and thus excisable. . 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 n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat products like bagasse and press-mud do not qualify the definition of Section 2F of CEA and as such are not being a manufacture. These are only an agricultural waste and residue which itself is not the result of any process and in the absence of manufacture, there cannot be any excise duty. The Hon ble Apex Court further clarified that since it is not a manufacture, Rule 6 of the Cenvat Credit Rules shall have no application. For the better appreciation Rule 6 is reproduced herein below:- Rule 6(1) The Cenvat credit shall not be allowed on such quantity of inputs used in or in relation to the manufacture of exempted goods or for provision of exempted services, or input service used in or in relation to the manufacture of exempted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turer or producer of final products , it doesn t extend to by- products released during the process of manufacture of main product that too without involvement of any such activity, which may be called as manufacture. 9. In view thereof, I am of the opinion that irrespective of the amendment, there arises no liability upon the appellant to pay the duty as demanded for the period w.e.f. September, 2014 to February, 2015 in Appeal No.52211/2018 nor for the reversal of the credit as demanded for the period June, 2015 to March, 2016 in appeal No.52210/2018. 10. The Adjudicating Authority below is therefore opined to have wrongly applied the impugned provision. The amendments seem to have wrongly been interpreted. The order is theref ..... X X X X Extracts X X X X X X X X Extracts X X X X
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