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2021 (9) TMI 750 - AT - Central ExciseReversal of Cenvat Credit - input - input services - pressmud - wastes generated during manufacturing of sugar/molasses - exempt goods - Rule 6(3)(i) of CENVAT Credit Rules, 2004 - HELD THAT:- In the instant case appellant had been asked to reverse the credit with interest etc. against clearance of pressmud. However, it has been made crystal clear that bagasse (a similar waste product like pressmud) is not a manufactured product but is only an agricultural waste and residue, which is not the result of any process and therefore cannot be treated as falling within the definition of Section 2(f) of the Central Excise Act, 1944 that defined a manufacturer and in the absence of manufacturing, there cannot be any excise duty and therefore, Rule 6 of the CENVAT Credit Rules, 2004 shall have no application. In obedience to the judicial precedent set by the Hon'ble Apex Court in UNION OF INDIA VERSUS DSCL SUGAR LTD. [2015 (10) TMI 566 - SUPREME COURT], such executive instruction as contained in the Circular dated 25.04.2016 at para 4.2 is not enforceable. Appeal allowed - decided in favor of appellant.
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