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2015 (1) TMI 1183 - CESTAT MUMBAIWhether Rule 6 of the Cenvat Credit Rules, 2004 would apply in respect of bagasse and press-mud generated during the course of manufacture of sugar and the assessee-manufacturer is required to reverse Cenvat credit on the inputs contained in the waste product generated or in the absence of maintenance of separate records, whether payment @ 5%/6% of the value of exempted goods needs to be done? - Held that:- Tribunal considered the very same matter in the case of Commissioner of Central Excise, Pune-II v. DY Patil SSK Ltd. & Ors. - [2014 (4) TMI 52 - CESTAT MUMBAI] and held that the waste products arising in the course of manufacture of sugar such as bagasse and compost fertilizer, cannot be considered as final products, and, therefore, payment of a sum equal to 10%/5% of the price of the goods is not required to be made in terms of Rule 6(3) of the Cenvat Credit Rules, 2004. The said decision was based on the decision of the Hon’ble High Court of Allahabad in the case of Balrampur Chini Mills Ltd. v. Union of India - [2013 (1) TMI 525 - ALLAHABAD HIGH COURT]; and of this Tribunal in the case of Indian Potash Ltd. v. Commissioner of Central Excise, Allahabad - [2012 (12) TMI 347 - CESTAT, NEW DELHI]. Ratio of these decisions applies squarely to the facts of the present case. Accordingly, we set aside the impugned order confirming the payment of a sum of ₹ 2,01,087/- under Rule 6 of the Cenvat Credit Rules, 2004 and allow the appeal with consequential relief, if any, in accordance with law.- Decided in favour of assessee.
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