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2018 (10) TMI 966 - AT - Central ExciseCENVAT Credit - common input/capital goods/input services used dutiable product and exempted product - “Bagasse” emerges as a waste/by-product, which was being cleared by the Appellant at ‘Nil’ rate of duty in the course of manufacture of dutiable Sugar & Molasses - recovery u/r 14 of CENVAT Credit Rules, 2004 read with Section 11A(1) of the Central Excise Act, 1944 - penalty u/r 15(1) of CENVAT Credit Rules, 2004. Held that:- The Hon'ble Supreme Court decision in the matter of DSCL Sugar Ltd. [2015 (10) TMI 566 - SUPREME COURT] has clearly laid down that bagasse is agricultural waste of sugarcane and waste and residue of agricultural products, during the process of manufacture of goods cannot be said to be result of any process. There is no manufacturing process involved in Bagasse’s production. “Bagasse” is not ‘goods’ but merely a waste or by-product, therefore Rule 6 of CENVAT Credit Rules, 2004 is not applicable in the present case. Appeal allowed - decided in favor of appellant.
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