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2012 (5) TMI 519 - CESTAT, NEW DELHIDuty demand - whether the appellant was required to pay 5% of the value of press mud/spent wash which comes into existence during the course of manufacture of sugar - Held that:- bagasse emerges in course of crushing of the sugarcane. It may be noted that crushing of sugarcane is necessary to extract cane sugar juice which in turn is processed for production of sugar and molasses. Bagasse is the waste product left after the crushing of sugarcane. Therefore, by no stretch of imagination it can be said that the assessee possibly could have maintained separate accounts for the inputs for production of sugar and molasses (excisable item) and bagasse. Thus, in our considered view, the amendment in Finance Act, cited by Shri Nagesh Pathak, AR and the Board’s Circular would not make any difference in the facts and circumstances of the case. Moreover, neither the SCN nor the impugned order in appeal mentions as to which common Cenvat credit availed inputs have been used in manufacture of sugar and molasses (dutiable final product) and bagasse (exempted final product). Since Bagasse emerges at sugarcane crushing stage, there is no possibility of any inputs-chemicals etc. having been used at that stage - Following decision of Indian Potash Ltd. [2012 (12) TMI 347 - CESTAT, NEW DELHI] - ratio of the same is equally applicable to the press mud inasmuch as bagasse as also press mud came into existence as a waste product during the course of manufacture of sugar - Decided in favour of assessee.
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