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2023 (5) TMI 517 - AT - Central ExciseCENVAT Credit - manufacture of dutiable and exempted goods as required under Rule 6(2) ibid (exempted product i.e. bagasse, generated during the manufacturing of sugar/molasses) - non-maintenance of separate records - amendment of Section 2(d) of Central Excise Act, 1944 w.e.f. 10.5.2008 - period in issue is from 1.3.2010 to 30.9.2010 - HELD THAT:- It is nowhere disputed by the department that bagasse were not emerged as a waste/residue of sugarcane. In the light of the facts involved herein, we are of the considered view that the issue involved in the instant Appeal is not more res integra in view of the law laid down by the Hon’ble Supreme Court in the matter of UNION OF INDIA VERSUS DSCL SUGAR LTD. [2015 (10) TMI 566 - SUPREME COURT] in which the Hon’ble Supreme Court has considered both the periods i.e. the periods before and after the insertion of explanation in Section 2(d) ibid, which has been heavily relied upon by the authorities below in fastening the duty liability on the appellant herein. The Hon’ble Supreme Court has held that bagasse being an agricultural waste or residue, there could be no manufacturing activity. On the basis of the amendment to Section 2(d), the department has taken out one circular No. 904/24/2009-CX, dated 28.10.2009 in line with the amendment in Section 2(d) ibid, which was also relied upon by the authorities below in confirming the demand. But after the judgment of the Hon’ble Supreme Court in the matter of DSCL Sugar Ltd. another circular No. 1027/15/2016-CX, dated 25.4.2016 has been issued by the department stating that since the period covered in the aforesaid decision of the Hon’ble Supreme Court applies to both period i.e. before and after the insertion of explanation in section 2(d) ibid therefore the circular dated 28.10.2009 becomes non est and are rescinded. Since the law laid down by the Hon’ble Supreme Court constitutes declaration of the law within the meaning of Article 141 of the Constitution of India which would be binding on all Court and Tribunals, therefore following the aforesaid decision of the Hon’ble Supreme Court, the issue involved herein decided in favour of the Appellant - Appeal allowed.
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