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2018 (8) TMI 6 - AT - Central ExciseCENVAT Credit - Bagasse as also Press Mud arising in the course of manufacture of sugar and molasses, cleared without payment of duty - demand of an amount equal to 6% of value of the same in terms of Rule 6(3)(i) of Cenvat Credit Rules, 2004 - whether Bagasse and Press Mud can be considered to be ‘goods’ whether excisable or non-excisable? Held that:- It stands held in decision of the Hon'ble Allahabad High Court in the case of COMMISSIONER, CENTRAL EXCISE, LUCKNOW VERSUS M/S KISAN SAHAKARI CHINI MILLS LTD [2013 (10) TMI 1197 - ALLAHABAD HIGH COURT] that Bagasse is agricultural waste of sugarcane and even though marketable duty cannot be imposed on the same and adding of explanation to definition of goods in section 2(d) will not make Bagasse a dutiable item. Admittedly Bagasse is bound to come into existence during the crushing of the sugarcanes and is an unavoidable agricultural waste. It cannot be said that the same emerges as a result of manufacture or any other process and cannot be equated with the word ‘goods’ - The explanation added to the Rule 6 which is to the effect that for the purposes of this Rule, exempted goods or final products as defined in Clauses D & H of Rule 2 shall include non-excisable goods cleared for consideration from the factory - the explanation added to Rule 6 will not change the scenario declared by Hon'ble Allahabad High Court. Appeal allowed - decided in favor of appellant.
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