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2018 (9) TMI 1913 - AT - Central ExciseCENVAT Credit - by-product - Bagasse, Press-mud and Ash arising during the course of the manufacture of Sugar & Molasses - whether the provisions of Rule 6 of CCR 2004 would be applicable in case of emergence of by-products namely, Bagasse, Press-mud and Ash during the course of the manufacture of Sugar & Molasses? HELD THAT:- During the course of manufacture of sugar, the products namely bagasse, press mud and ash are generated. Such by-products emerged during the course of manufacture of sugar cannot be considered as final product in as much as the respondent had never intended to manufacture those byproducts and the same emerges involuntarily during the process of manufacture of the final product. Since bagasse and press mud removed from the factory are excisable goods, classified under Chapter 23 of the Tariff Act, the circular dated 25.04.2016 relied upon by revenue cannot sustain the demand in as much as explanation 1 appended to Rule 6 ibid only clarified that the final product defined in clauses (d) and (h) of rule 2 shall include non-excisable goods cleared for consideration from the factory - Since the disputed goods are admittedly excisable, the case of the respondent is not covered under the explanation appended to Rule 6 of the rules. There is no infirmity in the impugned order passed by the learned Commissioner (Appeals) - appeal dismissed - decided against Revenue.
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