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2012 (12) TMI 347 - AT - Central ExciseCenvat credit of excise duty paid on inputs - manufacture of sugar during crushing of sugarcane by-product/waste - bagasse emerges – alleged that since the appellant have not maintained separate account and inventory of the inputs used in or in relation to manufacture of dutiable final products - sugar and molasses and exempted final product - bagasse, in accordance with the provisions of Rule 6 (3) of Cenvat Credit Rules, 2004, they would be required to pay an amount equal to 8% of the sale value of bagasse – Held that:- Bagasse emerges in course of crushing of the sugarcane - 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 - no need to maintained separate accounts for the inputs for production of sugar and molasses (excisable item) and bagasse - Since Bagasse emerges at sugarcane crushing stage, there is no possibility of any input-chemicals etc. having been used at that stage – in favor of assessee
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