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2014 (7) TMI 318 - CESTAT AHMEDABADCENVAT Credit - Clearance of bagasse generated during the processing of sugarcane for manufacture of sugar without payment of duty - Non maintenance of separate accounts - Held that:- Appellant has been taking the plea before both the lower authorities that ‘Bagasse’ is a waste generated during the crushing of sugarcane and has been thought to be marketable, the same cannot be considered as a ‘manufactured product’ in order to attract the provisions of Rule 6 (3) of the Cenvat Credit Rules. - identical issues have been coming up all over the country and this Tribunal in the case of Bannari Amman Sugars Ltd. Vs Commissioner of Central Excise Salem - [2013 (12) TMI 1036 - CESTAT CHENNAI], Delta Sugars Ltd. Vs Commissioner of Central Excise Guntur - [2013 (10) TMI 796 - CESTAT BANGALORE] have been taking a view that ‘Bagasse’ is not a manufactured product and hence the provisions of Rule 6 (3) will not be applicable. We find that the based upon these decisions, the CBEC had issued a Circular No.904/24/2009-CX dt. 28.10.2009 wherein it was directed to the field formations that the amount equivalent to 5% or 10% of the value of ‘Bagasse’ needs to be demanded from the assessee. The said circular is struck down by the Hon’ble Allahabad High Court in the case of Balrampur Chini Mills Ltd. & Others Vs Union of India - [2013 (1) TMI 525 - ALLAHABAD HIGH COURT] - Decided in favour of assessee.
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