TMI Blog2013 (9) TMI 725X X X X Extracts X X X X X X X X Extracts X X X X ..... btained during manufacture of sugar waste cannot be regarded as a final product exempt from duty for invoking provisions of Rule 57 CC of Central Excise Rules, 1944. Bagasse was classified under sub-heading 2303 20 00 of Central Excise Tariff Act - Neither the penalty nor the interest can be charged from the petitioners, in view of the fact that the petitioners were not liable to duty either by payment or by reversal in respect of bagasse sold by the petitioner - As the petitioners have paid the entire duty and interest under protest, the entire deposited amount shall returned to them - waste was never manufactured and it only emerges in the process of manufacture of final product, Rule was not applicable to bagasse which was admittedly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duct merely on such entry. Such 'bagasse' is nothing but a waste obtained during manufacture of sugar waste cannot be regarded as a final product exempt from duty for invoking provisions of Rule 57 CC of Central Excise Rules, 1944." The said finding has also been followed in the cases of Central Excise Commissioner v. Mahalakshmi Sugar Mills and Commissioner Central Excise, Meerut versus U. P. State Sugar Corporation and held that the Bagasse and press mud are not final products of the manufacturer. Accordingly, recovery of 8% amount of the waste Bagasse and press mud cleared by the said sugar company was held to be not justified. "Thus, it is not in dispute that the bagasse is an agricultural waste of sugarcane, though marketable produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the entire duty and interest under protest, the entire deposited amount shall returned to them. In view of above discussion, all the writ petitions are allowed and impugned Circular dated 28.10.2009, issued by the Central Board of Excise and Customs, the Circular dated 3.10.2009 issued by the Central Excise, U.P., Lucknow and demand notice dated 24/27.9.2010 issued by the Joint Commissioner, Customs Central Excise and Service Tax are hereby quashed. As some of the petitioners deposited the entire duty and interest under protest, it should be returned to them, within a maximum period of four weeks, from the date of presentation of a certified copy of this order." Since the controversy in question has been settled at rest by the aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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