2015 (10) TMI 566 - SUPREME COURT

Duty demand / Reversal of cenvat credit - Bagasse - Manufacture - generation of electricity - whether Bagasse which emerges as residue/waste of sugarcane is subjected to excise duty or not - Held that:- 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. - Since it is not a manufacture, obviously Rule 6 of the Cenvat Rules, 2004, shall have no application as rightly held by the High Court. - Since Bagasse is held not to be result of any manufacture - Decided against Revenue.