9911796707
TMI Blog2003 (12) TMI 240X X X X Extracts X X X X X X X X Extracts X X X X ..... al Excise Act, 1944. He also imposed penalty of equivalent amount under sub-rule (4) of Rule 57-I read with Section 11AC of the Central Excise Act, 1944. He also demanded interest at the appropriate rate on the above amount of Rs. 29,31,923/- under sub-rule (5) Rule 57-I read with Section 11AC of the Central Excise Act, 1944. 2. Aggrieved by this order, the appellants have come in appeal on the ground that the chemicals which are used in their factory are for the manufacture of sugar and not for the manufacture of Bio-compost Fertilizer (Organic manure). The bio-compost fertilisers are processed out of pressmud and effluent waste matter. He further submitted that pressmud comes out of sugar cane and is a waste which has been held by the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d therefore, the provisions of Rule 57AD and Rule 6(3)(b) are not applicable in this case. He has also relied on earlier order passed by the Commissioner (Appeals), Trichy vide Order No. 152/98-CBE, dt. 20-10-98 in an identical case. The Commissioner (Appeals), while agreeing with the order passed by his predecessor and following the law laid down by the Apex Court, he set aside the order passed by the lower adjudicating authority and decided the matter in favour of the appellants/assessee. Ld. Counsel N. Venkatraman invited our attention to the judgments rendered by the Apex Court in the case of CCE, Meerut v. Titawi Sugar Complex reported in 2003 (152) E.L.T. 21 (S.C.) wherein the Hon'ble Apex Court has held that Pressmud being not market ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not correct as the input for the manufacture of Bio-earth is not the said chemicals but pressmud. By no stretch of imagination it can be said that Bio-earth was manufactured by using the common inputs such as Phosphoric acid, Mazu-400, Diftreat, Nalco-7415, Mafloc etc. Rule 57CC provides that where a manufacturer is engaged in the manufacture of any final product which is chargeable to duty as well as in any other final product which is exempt from whole of the duty leviable thereon and the manufacturer takes credit of specified duty on any inputs which is used or ordinarily used in or in relation to the manufacture of both the aforesaid categories of final products, the manufacturer shall unless the provisions of sub-rule (9) are complied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed in or in relation to the manufacture of both the aforesaid categories of final products, the manufacturer shall unless the provisions of sub-rule (9) are complied with pay an amount equal to eight percentage of the price of the second category of the final product charged by the manufacturer for sale of such goods at the time of their clearance from their factory. Thus for the purpose of this Rule there should be two final products and common inputs should be used in both the categories of final products. In the instant case as already explained the above chemicals have been used only in the manufacture of sugar and not in the manufacturer of Bio-compost and hence the provisions of Rule 57CC, 57AD(2) and Rule 6(3)(b) are not applicable ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
