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2023 (7) TMI 430 - AT - Central ExciseRecovery of the amount equal to 6% of sale value of Bagasse, Press mud, boiler ash and Sludge - Rule 6(3) of the Cenvat Credit Rules, 2004 alongwith interest and penalty - HELD THAT:- An identical issue had arisen in the matter of PURNA SAHAKARI SAKHAR KARKHANA LTD. VERSUS COMMISSIONER OF CGST & C. EXCISE, AURANGABAD [2022 (12) TMI 6 - CESTAT MUMBAI] Mumbai in which this Tribunal allowed the appeal filed by the assessee therein - It was held that These are by-products only and merely emerge as waste or residue while manufacturing sugar and molasses from sugar cane. None of the by-products falls within the definition of manufacture and in its absence nothing can be demanded from the appellant. It is not the case anywhere that after the amendment on 1.3.2015 by-products/ waste/residue have been included in the definition of ‘manufacture’ and therefore in my view the provisions of amended Rule 6(3) or Rule 6(2) ibid has no application and resultantly the demand raised by the revenue cannot sustain. The pressmud, bagasse, boiler ash and sludge which emerged as waste or byproduct, fall outside the purview of Rule 6 ibid. Accordingly the impugned order is set aside and the Appeal filed by the Appellant is allowed.
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