TMI Blog2017 (3) TMI 506X X X X Extracts X X X X X X X X Extracts X X X X ..... isable goods, etc. and accordingly, the same is fully allowable - credit allowed - appeal dismissed - decided against Revenue. - E/1469/09 - A/86074/17/SMB - Dated:- 15-2-2017 - Mr. Ramesh Nair, Member (Judicial) Shri.H.M Dixit, Asst. Comm. (AR) for appellant Shri.V.B. Gaikwad, Advocate for respondent ORDER Per Ramesh Nair 1. The facts of the case is that the appellant is engaged in the manufacture of sugar. During the course of manufacture of sugar, a by-product viz., press mud is generated. Cenvat Credit was availed in the inputs service for disposal of the press mud. The department has denied the Cenvat Credit on such inputs service on the ground that it is used for manufacture of exempted goods. The respondent b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overed by the ruling of the Hon ble Madras High Court in the case of Commissioner of Central Excise Vs. EID Parry (I) Ltd. 2013 (293) ELT 10 (Mad), wherein similar facts and circumstances of the sugar manufacture, it has been held as follows: 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 Alcohol. Once they use those cenvated inputs at the initial stage and obtain certain final products as well as wastes such as press mud and spent wash, there was no further application or usage of those inputs either in or in relation to the manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned 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 obtained after crushing the sugarcane is further processed for manufacture of sugar. Press mud is nothing but impurities present in the cane juice. Likewise, spent wash is an inevitable waste product when molasses is treated to bring out ethyl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture of cement/caustic soda etc., Therefore, the inputs that were used in relation to the manufacture of final products viz., cement and caustic soda were allowed modvat credit. Thus, in the fact and circumstances of the case, the present appeal, in view of the ruling of the Hon ble Madras High Court in the case of EID Parry (I) Ltd. (supra), I hold that there is no infirmity in the order of Commissioner (Appeals) and he has rightly held that manpower also consumed for the purpose of handling waste and compost etc. is an essential part of manufacture of the product being excisable goods, etc. and accordingly, the same is fully allowable . 5. Following the above decision of the Tribunal in the case of Sahyadri SSK Ltd., (su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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