TMI Blog2019 (2) TMI 1384X X X X Extracts X X X X X X X X Extracts X X X X ..... rated through solar power, hydro power, wind power etc. It has been held by this Tribunal in the case of Jakarya Sugars Ltd, [2018 (5) TMI 1665 - CESTAT MUMBAI], that electricity generated from bagasse which is a by-product is neither a dutiable goods nor liable for payment of 6% - the duty demand made against such sale of surplus electricity manufactured through waste product is not sustainable in law - appeal allowed - decided in favor of appellant. - APPEAL NO. E/86254/2018 - A/85362/2019 - Dated:- 22-2-2019 - DR. SUVENDU KUMAR PATI, MEMBER (JUDICIAL) Ms. Padmavati Patil, Advocate for Appellant Shri M.R. Melvin, Superintendent (AR) for Respondent ORDER Explanation 1 inserted to Rule 6(1) of Cenvat Credit Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant submitted that department itself had admitted in the case of Gularia Chini Mills 2014 (34) STR 175 (HC-All) before the Hon ble Allahabad High Court that bagasse were neither input nor input service used for generation of electricity and the same had attained finality in the decision of the Hon'ble Supreme Court reported in 2015 (322) ELT 769 (SC) in the case of DSCL Sugar Ltd. case. It was also held that since provision of Rule 6 is not for waste products like bagasse, the same will not apply to electricity generated by using bagasse only when no other input is used other than turbo oil 46, against which credit taken was reversed, including reversal of service tax component of repair and maintenance. Learned Counsel f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the adversaries which are mostly related to the incidence prior to the insertion of proviso-1 to Cenvat Credit Rules wef. 01.03.2015 except Jakarya Sugars Ltd. Admittedly electricity, though not found in tangible form, is classifiable under Tariff item no. 27160000 of Central Excise Tariff Act, 1985. But it is a non-excisable goods and the process of generation of electricity though a manufacturing process is dutiable if it is generated from mineral oils, bitumen substance, mineral waxes etc. and electricity generated from bagasse is not covered under Chapter 27 like electricity generated through solar power, hydro power, wind power etc. Therefore, as has been held by Hon'ble Allahabad High Court in Gularia Chini Mills (supra) el ..... X X X X Extracts X X X X X X X X Extracts X X X X
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