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2013 (9) TMI 725 - HC - Central ExciseCENVAT Credit – production of bagasse during mcrushing of sugarcane - Duty under Protest – Refund of Duty – Held that:- As decided in Balrampur Chini Mills Ltd. vs. Union of India and others [2013 (1) TMI 525 - ALLAHABAD HIGH COURT] - bagasse was a waste product and no more duty will be imposed over it - Bagasse and 'press mud' were not final products of the manufacturer. The law was well settled that 'bagasse' generated from the crushing of the sugarcane was neither manufactured goods nor manufactured final product, but it was a residue/waste - 'bagasse' was nothing but a waste obtained during manufacture of sugar waste cannot be regarded as a final product exempt from duty for invoking provisions of Rule 57 CC of Central Excise Rules, 1944. Bagasse was classified under sub-heading 2303 20 00 of Central Excise Tariff Act - Neither the penalty nor the interest can be charged from the petitioners, in view of the fact that the petitioners were not liable to duty either by payment or by reversal in respect of bagasse sold by the petitioner - As the petitioners have paid the entire duty and interest under protest, the entire deposited amount shall returned to them - waste was never manufactured and it only emerges in the process of manufacture of final product, Rule was not applicable to bagasse which was admittedly a waste, which emerges from the crushing of sugarcane for the manufacture of final product, namely, sugar.
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