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TMI Blog2015 (5) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... sse and press mud not liable to duty is entitled to CENVAT credit on the inputs used. He explains that the input and output need not have one to one relationship as has been appreciated by the Hon ble High Court of Madras in para 15 to 17 of the judgment in CCE, Pondicherry Vs. EID Parry (I) Ltd. 2013 (293) ELT 10 (Mad.). Therefore, there cannot be denial of CENVAT credit to the appellant on the common inputs. For the convenience of reading the said paragraphs 15 to 17 are reproduced as under:- "15. We find force in the submission made by the first respondent-assessee. Certainly, the cenvated inputs were brought into the factory by the assessee for using it in the manufacture of their final products viz., sugar, molasses, Denatured Ethyl A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacturer, the Revenue can invoke Rule 57CC. In other words, when spent wash and press mud had emerged as inevitable wastes during the process of manufacturing of final products viz., sugar and Denatured Ethyl Alcohol and the said wastes are combined and treated together to form another final product viz., bio-compost, the said final product cannot be brought under Rule 57CC. 17. We are conscious of the fact that what is in dispute is not the question as to whether bio-compost fertiliser is a final product or not, but on the other hand the question is as to whether such final product is liable to be brought under Rule 57CC of the Central Excise Rules or not. Press mud is an unavoidable and inevitable waste which arises when the cane juice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tamilnadu Electricity Board to avail equivalent unit of power at different place of manufacture of appellant. 4. Hon ble High Court of Allahabad in paragraphs 25 to 27 of the judgment in Gularia Chini Mills Ltd. Vs. Union of India 2014 (34) STR 175 (All.) held that if generation of power by appellant was neither using mineral fuels, mineral oils and products of their distillation, bituminous, substances, mineral waxes etc., the energy so generated from bagasse is not be covered by Chapter 27 of the Central Excise Tariff Act, 1985. Therefore, there cannot be denial of CENVAT credit. It was the opinion of the Court that the electricity energy not being excisable goods nor its is exempted goods in terms of Rule 2(d) of the CENVAT Credit Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit shall not allow on such quantity of inputs which is used in the manufacture of exempted goods. For applicability of Rule 2, the following ingredients must exist :- (i) where a manufacturer avails Cenvat credit on any input (as defined in Section 2(k) (ii) and manufactures such final products which are chargeable to duty and (iii) also manufactures such final products which are exempted goods. 5. To the observation and finding of the Hon ble High Court, Revenue has no material to show that appellant has been unjustly benefited at the cost of Revenue through the process carried out and using common input. 6. In absence of any evidence to show a different reason or rationale against the principle laid down by Hon ble High Court of Al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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