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Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2019 (12) TMI AT This

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2019 (12) TMI 520 - AT - Central Excise


Issues:
Challenge to demand of 6% of the value of bagasse under Rule 6(3) of CENVAT Credit Rules, 2004.

Analysis:
The appellant, engaged in sugar and molasses manufacture, sold bagasse without duty payment. Revenue argued for 6% value demand due to lack of separate account maintenance for dutiable and exempted products inputs/services. The appellant contested, citing a High Court judgment (Balrampur Chini Mills Ltd v. Union of India) where Rule 6 was deemed inapplicable to bagasse.

The Tribunal noted the settled High Court stance that Rule 6 doesn't cover bagasse. Quoting the High Court's view on the matter, the Tribunal ruled in favor of the appellant, negating the 6% value demand. Consequently, the impugned order was set aside, and the appeal allowed with consequential relief.

 

 

 

 

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