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2023 (2) TMI 728 - AT - Central ExciseCENVAT Credit - inputs - bagasse/press-mud - excisable goods or exempt goods - demand of amount equal to 6% of Sale value of Bagasse and Press mud, alongwith interest and penalty - HELD THAT:- Both the lower authorities have held that since the appellant has availed CENVAT credit on various inputs going into the manufacture of the final products, and bagasse and pressmud arising during the course of manufacture and are exempt, CENVAT credit cannot be allowed. The issue is no more res integra as the question as to whether bagasse is manufactured under the provisions of Section 2(f) of the Central Excise Act, 1944 or otherwise and the CENVAT credit availed on the inputs which are used for the manufacture of sugar has to be denied or otherwise has been settled by the apex Court in the case of UNION OF INDIA VERSUS DSCL SUGAR LTD. (SC) [2015 (10) TMI 566 - SUPREME COURT]. Hon’ble Apex Court held 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. Appeal allowed - decided in favor of appellant.
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