Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2024 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (1) TMI 820 - CESTAT KOLKATAReversal of proportionate credit attributable to exempted goods - bagasse emerge as a by-product, during the course of manufacture of sugar - manufacture of both dutiable and exempted product - Rule 6 of Cenvat Credit Rules, 2004 - HELD THAT:- In the present case, during the course of manufacture of sugar, bagasse emerges as a by-product which over a period of time gets converted into press mud and bio compost and the same were cleared without payment of duty. Since these by-products were cleared without payment of duty, the Department alleged that the Appellant manufactured both dutiable and exempted product and hence, they are liable to reverse the Cenvat credit proportional to the value of exempted goods, as per Rule 6 of the Cenvat Credt Rules, 2004. The issue is no longer res integra as the Hon’ble Supreme Court in case of UNION OF INDIA VERSUS DSCL SUGAR LTD. [2015 (10) TMI 566 - SUPREME COURT] has categorically held that reversal of Cenvat Credit is not warranted in terms of Cenvat Credit Rules, 2004, when the by-product Bagasse is cleared from the factory without payment of duty. Thus, the demands confirmed in the impugned order is not sustainable and accordingly, the same is set aside - appeal allowed.
|