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2016 (11) TMI 352 - AT - Central ExciseRecovery of duty - CENVAT credit - byproduct - Rule 6(3)(b) of Cenvat Credit Rules 2004 - inputs used in or in relation to the manufacture of dutiable goods as well as in exempted product - whether the Press-mud emerges as a by-product during the course of manufacture of Sugar/Molasses be subjected to the provisions of Rule 6(3) of the Cenvat Credit or otherwise? - Held that: - reliance placed on the decision of Balarampur Chini Mills Ltd Vs UOI [2013 (1) TMI 525 - ALLAHABAD HIGH COURT] where it was held that 'sugar' is the final product and molasses is an intermediary product or by-product, therefore, for applicability of Rule 6, the manufacture of dutiable goods and manufacture of exempted goods are conditions precedent. Since waste is never manufactured and it only emerges in the process of manufacture of final product, Rule is not applicable to bagasse which is admittedly a waste, which emerges from the crushing of sugarcane for the manufacture of final product, namely, sugar. Recovery of duty not sustainable - appeal allowed - decided in favor of appellant.
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