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2022 (7) TMI 8 - AT - Central ExciseCENVAT Credit - exempted product/by-product - Bagasse generated during the course of manufacture of Sugar - Rule 6 of Cenvat Credit Rules - HELD THAT:- The issue is no longer res-integra in the light of the Hon’ble Supreme Court judgment in the case of UNION OF INDIA VERSUS DSCL SUGAR LTD. [2015 (10) TMI 566 - SUPREME COURT] where it was held that In the present case 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. Even after the period of amendment under section 2(f) also the Allahabad high court in the case of M/S BALRAMPUR CHINI MILLS LTD. THROUGH ITS GENERAL MANAGER VERSUS UNION OF INDIA, MINISTRY OF FINANCE DEPARTMENT OF REVENUE [2019 (5) TMI 972 - ALLAHABAD HIGH COURT] has stuck down the circular dated 25.04.2016 and it was held that in the case of generation of Bagasse in the manufacture of sugar and clearance thereof Rule 6 of Cenvat Credit Rules, 2004 has no application. Appeal allowed - decided in favor of appellant.
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