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TMI Blog2016 (10) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case are that the appellants were issued a Show Cause Notice dated 01-10-2010, contending that amendment to explanation Section 2(d) of Central Excise Act, 1944, provides that the goods which are capable of being bought and sold are considered to be marketable as a result manufacture gets established and such goods attracts Excise duty and further that Bagasse being exempted under Rule 6 (3) amount needs to be reversed in respect of sale value of Bagasse for the period from April, 2009 to March, 2010, since common inputs were used in the manufacture of exempted Bagasse and other dutiable products. An amount of Rs. 2,81,395/- was demanded through said Show Cause Notice dated 01-10-2010. Thus, the demand was confirmed through Order-in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17-10-2102. Being aggrieved by the said Order-in-Appeal dated 31-05-2013, the appellant has preferred appeal before this Tribunal, which is bearing No. E/59654/2013. 5. In the similar manner, appellants were issued a Show Cause Notice dated 10-02-2012, covering the period from April, 2011 to October, 2011, demanding an amount of Rs. 3,40,525/-, under said Rule 6(3) of Cenvat Credit Rules, 2004, on the consideration received by appellant for supply of electricity to the State Grid. The said Show Cause Notice was adjudicated through Order-in-Original dated 28-01-2013, where the Original Authority has confirmed the demand of Rs. 3,40,525/- and imposed equal penalty. The appellant has preferred appeal before Commissioner (Appeals) who through ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he relevant extract of above stated Ruling of Hon'ble Supreme Court is as follows:- "2. The facts in brief are as under : 3. Respondents herein are manufacturer of sugarcane and molasses falling under Chapter sub-heading 1701 11 90 and 1703 10 00 respectively, of the First Schedule to the Central Excise Tariff Act, 1985. In the process of manufacture of sugar, sugarcane is crushed, its juice is extracted and Bagasse emerges as residue/waste of sugarcane. 4. It is not in dispute that Bagasse is otherwise classified under Chapter sub-heading No. 2303 20 00 of the First Schedule to the Central Excise Tariff Act, 1985 and attracts nil rate of duty. 5. However, show cause notices were issued to the respondents herein stating that Bag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ude any article, material or substance capable of being bought or sold for consideration and as such goods shall be deemed to be marketable. Thus, it introduce the deeming fiction by which certain kind of goods are treated as marketable and thus excisable. 8. However, before the aforesaid fiction is to be applied, it is necessary that the process should fall within the definition of manufacture as contained in Section 2(f) of the Act. The relevant portion of amended Section 2(f) reads as under : Section 2(f) - manufacture includes any process - (i) incidental or ancillary to be completion of a manufactured product; (ii) which is specified in relation to any goods in the section or Chapter notes of [The First Schedule] to the Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annot be treated as falling within the definition of Section 2(f) of the Act and the absence of manufacture, there cannot be any excise duty. 11. Since it is not a manufacture, obviously Rule 6 of the Cenvat Rules, 2004, shall have no application as rightly held by the High Court. Civil Appeal No. 9332 of 2013 : CCE v. M/s. Saryoo Sahakari Chini Mills Ltd. 12. Since Bagasse is held not to be result of any manufacture, this appeal is also dismissed. 1. SLP(C) No. 3340 of 2013 : Union of India v. Haidergarh Chini Mills 2. SLP(C) No. 3342 of 2014 : Union of India v. Akbar Pur Chini Mills 3. SLP(C) No. 3344 of 2014 : Union of India v. Gularia Chini Mills 4. Civil Appeal No. 2761 of 2014 : Union of India v. Manakpur Chini Mills 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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