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2018 (8) TMI 160 - AT - Central ExciseReversal of CENVAT Credit - emergence of Bio-manure arising as a by product - common inputs and input services - Rule 6(3)(1) of Cenvat Credit Rules, 2004 - Held that:- The Hon’ble Supreme Court in the case of Union of India vs. D.S.C.L Sugar Ltd. [2015 (10) TMI 566 - SUPREME COURT] has held that bagasse being an agricultural waste or residue, there could be no manufacturing activity - Similarly bio manure is nothing but a byproduct which necessarily arises during the course of manufacture of the goods and it cannot be said that the same was a manufactured product. If the same was not manufactured, the same cannot be held to be excisable, in which case the amendment carried out would not apply. Revenue has itself treated the bio manure as a byproduct which arises during the course of manufacture of sugar and molasses. If that be so the provisions of Rule 6(3) would not apply. Appeal allowed - decided in favor of appellant.
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