TMI Blog2016 (11) TMI 352X X X X Extracts X X X X X X X X Extracts X X X X ..... roduct during the course of manufacture of Sugar/Molasses be subjected to the provisions of Rule 6(3) of the Cenvat Credit or otherwise? - Held that: - reliance placed on the decision of Balarampur Chini Mills Ltd Vs UOI [2013 (1) TMI 525 - ALLAHABAD HIGH COURT] where it was held that 'sugar' is the final product and molasses is an intermediary product or by-product, therefore, for applicability o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7/05/2013 passed by the Commissioner (Appeals), Central Excise, Customs and Service Tax-SURAT-II. 2. Briefly stated the facts of the case are that the appellants are engaged in the manufacture of excisable goods viz., V.P. Sugar, Molasses etc., falling under CH 17 of CETA 1985. The appellant had availed Cenvat Credit on Inputs viz., Sulphur, Lime, Phosphoric Acid and also some Input Services. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dvocate Shri Rahul Gajera for the appellant submits that Press-mud cannot be considered as an exempted excisable goods since it emerges as a by-product during the course of manufacture of Sugar/Molasses. It is his contention that this issue has been settled by the Allahabad High Court in the case of Balaram Chini Mills Ltd. Vs.UOI 2014 (300) ELT 372(All.) Tribunal in the case of Indian Potash Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ows that the manufacturer has to manufacture both dutiable goods as well as exempted goods. Since bagasse is not manufactured goods but is a waste product which emerges/comes into existence in the process of manufacture of sugar, it is not manufacture of exempted goods. 19. Rules 6(2) stipulates that where a manufacturer avails Cenvat credit in respect of any inputs and manufactures such fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and it only emerges in the process of manufacture of final product, Rule is not applicable to bagasse which is admittedly a waste, which emerges from the crushing of sugarcane for the manufacture of final product, namely, sugar. 6. In view of the above, I do not find merit in the impugned order accordingly, the same is set aside and the appeal is hereby allowed with consequential relief, if ..... X X X X Extracts X X X X X X X X Extracts X X X X
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