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2019 (11) TMI 489 - AT - Central ExciseCENVAT credit - electricity generated and sold by the appellant sugar manufacturing company from its waste product called bagasse - addition of Explanation 1 to Rule 6(1) of CENVAT Credit Rules, 2004 w.e.f. 01.03.2015 - HELD THAT:- Admittedly electricity, though not found in tangible form, is classifiable under Tariff item no. 27160000 of Central Excise Tariff Act, 1985. But it is a non-excisable goods and the process of generation of electricity though a manufacturing process is dutiable if it is generated from mineral oils, bitumen substance, mineral waxes etc. and electricity generated from bagasse is not covered under Chapter 27 like electricity generated through solar power, hydro power, wind power etc. As has been held by Hon'ble Allahabad High Court in GULARIA CHINI MILLS AND OTHERS VERSUS UNION OF INDIA AND OTHERS [2013 (7) TMI 159 - ALLAHABAD HIGH COURT] electricity energy is not an excisable goods nor it is exempted goods as defined in Rule 2(d) of the CENVAT Credit Rules, 2004. Thus, the duty demand made against such sale of surplus electricity manufactured through waste product is not sustainable in law - appeal allowed - decided in favor of appellant.
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