Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (11) TMI 1449 - AT - Central ExciseExcisability - Waste - Bagasse - press mud - Held that:- There is no duty liability on non-excisable goods cleared for a consideration, prior to 01.03.2015 and for this reason, the adjudicating authority has felt it proper and dropped the SOD up to 28.02.2015. Whether press mud, a waste, is a non-excisable commodity or not; and whether it is hit by the Explanations inserted with effect from 01.03.2015? - Held that:- Explanation 1 applies to exempted goods or final products including non-excisable goods cleared for a consideration. Rule 2(d) of the CENVAT Credit Rules (CCR), 2004 defines “exempted goods” to mean excisable goods which are exempt from the whole of the duty, to also include goods which are chargeable to nil rate of duty and the goods used impliedly suggest a final product - press mud cannot be compared with other by-products like bio-compose or even bagasse for that matter. Moreover, from a bare reading of Explanations 1 and 2 - press mud does not fit into the definition of “exempted goods”, as defined under Rule 2(d) of CCR because it is not an excisable good; nor can it be termed as a final product because it is not manufactured or produced from input or using input service. This is because it is a natural by-product which does not involve any effort nor is it the primary intention of a sugar manufacturer to intend to manufacture press mud. The assessee is not liable to pay any duty and therefore, the demand is set aside - appeal allowed - decided in favor of appellant.
|