Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2013 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (12) TMI 454 - AT - Central ExciseDuty demand under Rule 6(3)(b) of cenvat credit Rules, 2001 – Brown sugar emerged as residue in manufacture of sugar – Held that:- Brown Sugar is not an agriculture waste (like Baggase and press mud) or a waste of an input after its use like HCL but a residue of manufactured product viz sugar not meeting the specification of standard sugar and is brown in colour - This is reprocessed and converted into normal sugar – it cannot be considered as waste or unmanufactured product, it is residue of manufactured product and can be reprocessed to manufactured product viz. sugar 8% amount is correctly demanded under Rule 6 (3) (b) of Cenvat Credit Rule, 2001. Brown Sugar is a residue and also sugar but not meeting the specifications of standard white sugar and requires reprocessing to convert into standard sugar - There is no dispute that inputs have been used in the manufacture of such sugar - Brown Sugar is a residue of a manufactured product and cannot be considered as waste like Baggasse or Mother Liquor - Classification of the product would not alter the position about the applicability of Rule 6 (3)(b) of Cenvat Credit Rules, 2001 – Decided against Assessee.
|