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2013 (4) TMI 180 - CESTAT NEW DELHIWaiver of pre-deposit - Cenvat Credit - manufacture of sugar during which bagasse emerges – maintenance of separate account and inventory of the inputs used in or in relation to manufacture of dutiable final and exempted products - Held 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. Moreover, neither the show cause notice 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. - demand set aside - decided in favor of assessee.
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