Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2019 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (12) TMI 421 - AT - Central ExciseCENVAT Credit - waste/residue/by-product/ refuse - pressmud - exempt goods - non-maintenance of separate records - whether after amendment in the year 2015, Rule 6 of Cenvat Credit Rules, 2004 is applicable in case of removal of pressmud generated during the manufacturing of sugar as the assessee is not maintaining separate accounts? - January, 2016 to March, 2017. HELD THAT:- There is no manufacturing process involved in pressmud’s production. “Bagasse, pressmud and composed fertilizer” is not ‘goods’ but merely a waste or byproduct therefore Rule 6 of the Cenvat Rules shall have no application in the present case and they are bound to come into existence during the crushing of the sugarcane and are an unavoidable agricultural waste. The amendment dated 1.3.2015 in Rule 6 CCR has wrongly been relied upon by both the authorities below in coming to the conclusion that the assessee is liable to reverse the Cenvat Credit availed by them - As per Rule 6(1) ibid read with Explanation-1, non-excisable goods which are manufactured by the manufacturer in his factory will get covered under Rule 6(1) and those goods which were not manufactured, like pressmud in these appeals, will not be covered under Rule 6 despite being non-excisable goods because pressmud is not being manufactured in the factory but it emerged as agricultural waste or residue. It is seen that Rule 6(1) was amended in order to include the inputs used in relation to the manufacture of exempted goods. As such it can be seen that the same relates to the manufacture and it can safely be concluded that there has to be a manufacturing activity for invoking the aforesaid Rule - ‘bagasse/pressmud’ which emerges as a waste/by-product, falls outside the scope of Rule 6 ibid. Even after amendment to Rule 6 ibid, pressmud which emerges as a waste/ by product, falls outside the scope of the said Rule - Appeal of assessee allowed.
|