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2022 (1) TMI 197 - AT - Central ExciseReversal of CENVAT Credit - input - Baggase - exempt goods - manufacture of taxable as well as exempt goods - non-maintenance of separate account for manufacturing of exempted as well as dutiable goods - demand to pay 5% of the value exempted goods interms of rule 6(3) of CENVAT rules 2004 - HELD THAT:- The issue has been settled by the Hon’ble apex court in the case of UNION OF INDIA VERSUS DSCL SUGAR LTD. [2015 (10) TMI 566 - SUPREME COURT] where Apex Court has held that in the present case it could not be pointed out as to whether any process in respect of Bagasse has been specified either in the Section or in the Chapter notice. In the absence thereof this deeming provision cannot be attracted. Otherwise, it is not in dispute that Bagasse is only an agricultural waste and residue, which itself is not the result of any process. Therefore, it cannot be treated as falling within the definition of Section 2(f) of the Act and the absence of manufacture, there cannot be any excise duty. As the Hon’ble apex court has held that Rule 6 of cenvat credit rules, 2004 is not applicable to the facts of the case. In that circumstances, no demand under rule 6(3) of cenvat credit rules 2004 is sustainable against the appellant - appeal allowed - decided in favor of appellant.
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