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TMI Blog2024 (3) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... amendment to the definition of goods under Section 2(d) of the Central Excise Act, 1944 observed Rule 6 of the Cenvat Credit Rules, 2004 cannot be made applicable to waste product i.e., Bagasse. There are no merit in the orders of the learned Commissioner (Appeals). Consequently, the impugned orders are set aside - appeal allowed. - DR. D. M. MISRA, MEMBER (JUDICIAL) AND MR. PULLELA NAGESWARA RAO, MEMBER (TECHNICAL) None for the Appellants Mr. Dyamappa Airani (AR) for the Respondent ORDER M/s. Shree Doodhganga Krishna Sahakari Shakkare Karkhane Nimayat, Chikodi and M/s. Krishna Sahakari Sakkare Kharkhane Niyamit (KSSKN), Athani, the appellants, aggrieved with the Orders-in-Appeal BEL-EXCUS-000-APP-MSC-290 to 291- 2018-19 dated 30.10.2018 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of Cenvat Rules, 2004, as amended. Consequently, demand notices were issued and on adjudication the demands were confirmed with interest and penalty. Aggrieved by the said order, they have filed appeals before the Commissioner (Appeals), who has rejected their appeals. Aggrieved with the orders of Commissioner (Appeals), the present appeals were filed. 3. The appellant in the appeal submitted that bagasse is generated during the course of manufacture of sugar as a waste product, which is used to generate steam and in turn is used to generate electricity; sugarcane is the main input for manufacture of sugar and molasses, which are the only dutiable final products. They have paid service tax under GTA and used the Cenvat credit to pay duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amendment to the definition of goods under Section 2(d) of the Central Excise Act, 1944 observed as follows: 8. However, before the aforesaid fiction is to be applied, it is necessary that the process should fall within the definition of manufacture as contained in Section 2(f) of the Act. The relevant portion of amended Section 2(f) reads as under: Section 2(f) - manufacture includes any process - (i) incidental or ancillary to be completion of a manufactured product; (ii) which is specified in relation to any goods in the section or Chapter notes of [The First Schedule] to 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 pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not a manufacture, obviously Rule 6 of the Cenvat Rules, 2004, shall have no application as rightly held by the High Court. 7. It has been held in the said case that Rule 6 of the Cenvat Credit Rules, 2004 cannot be made applicable to waste product i.e., Bagasse. 8. Further, the said judgment of the Hon ble Supreme Court has been followed recently and is reported as Union of India and others Vs. Indian Sucrose Ltd. SLP No.1700/2021 MANU/SCOR/37768/22. Further, pursuant to the said judgment of the Hon ble Supreme Court, Board has issued a Circular No. 1084/05/2022-CX on 07.07.2022 withdrawing its earlier Circular No. 1027/15/2016-CX dated 25.04.2016. 9. In view of the above, following the aforesaid laid down principles, we do not find me ..... X X X X Extracts X X X X X X X X Extracts X X X X
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