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TMI Blog2013 (12) TMI 1036X X X X Extracts X X X X X X X X Extracts X X X X ..... Prasad, JC (AR) ORDER Per Mathew John; 1. The appellant is a manufacturer of sugar. During the course of manufacture, certain products like Bagasse and Spent Wash come into existence which they clear from their factory, take it to a distant location where both are mixed together to produce Bio-compost and Bio-super which are cleared without payment of duty availing exemption under Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Bio-super was manufactured was about 10 Kms. away from the distillery and was not part of the distillery premises at all. Therefore, demand to pay an amount based on value of these products has no meaning because these were not products cleared from the factory where CENVAT credit was taken. He further argued that products namely, Bagasse and Spent Wash which were cleared from the factory, were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NVAT is not to be denied if the inputs are used in any intermediate of the final product even if such intermediate is exempt from payment of duty. The basic idea is that CENVAT credit is admissible so long as the inputs are used in or in relation to the manufacture of final products, and whether directly or indirectly. Therefore, he prays that case may be admitted without any pre-deposit. 4. Opp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es in respect of chemicals used in Bio-compost was considered and Revenue's appeal was dismissed. The situation under Rule 6 of the new Cenvat Credit Rules, 2004 cannot be any different. Therefore, we grant waiver of pre-deposit of dues arising from the impugned order and there shall be stay on collection of such dues during pendency of appeal.
(Dictated and pronounced in open court) X X X X Extracts X X X X X X X X Extracts X X X X
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