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2019 (5) TMI 1095 - AT - Central ExciseCENVAT Credit - common input used for dutiable and exempted goods - iron ore fines - waste product - maintenance of separate records - Rule 6 (3) of Cenvat Credit Rule, 2004 - Circular dated 25.04.2016 - HELD THAT:- In the present case the iron fines are bound to emerge during crushing of iron ore used for manufacturer of final product. No extra procedure is required for emergence of iron fines. Hence, the fines cannot be called as manufactured product. The Hon'ble Supreme Court’s decision in the matter of UNION OF INDIA VERSUS DSCL SUGAR LTD. [2015 (10) TMI 566 - SUPREME COURT] has clearly laid down that bagasse is agricultural waste of sugarcane and the 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. “Bagasse” is bound to come into existence during the crushing of the sugarcanes and is an unavoidable agricultural waste. Credit allowed - appeal allowed - decided in favor of appellant.
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