TMI Blog1999 (10) TMI 332X X X X Extracts X X X X X X X X Extracts X X X X ..... The applicants are manufacturers of V.P. sugar falling under Tariff Heading 17.01 of the Schedule to the Central Excise Tariff Act and have been availing Modvat credit of the Central Excise duty paid on various inputs used in the manufacture of sugar (final product) and molasses (by-product), under Rule 57A of the Central Excise Rules. At the very first stage of extraction of juice from sugarcane, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the show cause notice, the jurisdictional Assistant Commissioner of Central Excise confirmed the demand of the aforesaid amount and imposed a penalty of like amount on the appellants. In the appeal filed by the party against the order of the adjudicating authority, the Commissioner of Central Excise (Appeals) held that bagasse was an item classified under separate Chapter Heading, though attracti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent/Revenue. 3. It is clear from the facts of the case that bagasse is an item resulting from crushing of sugarcanes for extraction of the juice in the sugarmill of the applicants and that no input whatsoever is involved in the said mechanical process of crushing in the mill. Further I am unable to subscribe to the view taken by the Department that the said goods are final products for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rty had prima facie case for waiver of pre-deposit of the amount of duty demanded on press-mud (which was generated as waste during the process of manufacture in the sugar mill of the party) which was treated as final product by the department for demanding duty under Rule 57CC of the Central Excise Rules. The Tribunal, in that case, granted unconditional stay, holding that press-mud was not a f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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