TMI Blog2018 (5) TMI 1665X X X X Extracts X X X X X X X X Extracts X X X X ..... nor liable for payment of 6% in terms of Hon’ble Supreme Court judgement in the case of DSCL Sugar Ltd. [2015 (10) TMI 566 - SUPREME COURT]. Rule 6 (3) (i) is applicable only when a common input, on which cannot availed is used in the manufacture of exempted and dutiable goods - For the generation of electricity, except the use of bagasee no any cenvatable input is used. Therefore, the Rule 6 does not come into play. The electrical energy is neither excisable under Section 2 (b) of the Central Excise Act, nor exempted goods. Hence, Rule 6 is not applicable - appeal allowed - decided in favor of appellant. - Appeal No. E/85228/18 - ORDER NO. A/86516 /2018 - Dated:- 24-5-2018 - Hon ble Mr.Ramesh Nair, Member ( Judicial ) And Hon ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... electricity company. 4. We have carefully considered the submissions made by both sides. We find that though electricity can be considered as exempted goods as non-excisable but the facts of the present case is that the electricity is generated from by-products, i.e. bagass, which is neither a dutiable goods nor liable for payment of 6% in terms of Hon ble Supreme Court judgement in the case of DSCL Sugar Ltd. 2015 (322) ELT 769 (SC). For the generation of electricity, except the use of bagasee no any cenvatable input is used. Therefore, the Rule 6 does not come into play. Rule 6 (3) (i) is applicable only when a common input, on which cannot availed is used in the manufacture of exempted and dutiable goods. As discussed above, no cenv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rst or Second Schedule of the Central Excise Tariff, (3) It must be subjected to tariff. 26. Admittedly, none of these conditions are attracted in the instant case insofar as electrical energy, which is mentioned in Chapter 27 of the Central Excise Tariff Act, covers only those electrical energy which are generated from mineral fuels, mineral oils and products of their distillation, bituminous, substances, mineral waxes, etc. The electrical energy generated from Bagasse is not covered under Chapter 27. Similarly, Chapter 27 does not cover electrical energy produced by solar power, hydro power, wind power or from bagasse. Therefore, we are of the view that electrical energy is not an excisable goods nor it is exempted goods as d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bagasse as raw material which is a waste product, as already held by this Court in writ petition No. 11791 of 2010 and no other inputs or input services has ever been used by the petitioner for generation of electricity which was only generated from bagasse. 34. For the discussions made hereinabove, it is clear that Geetanjali Woolens Mill judgment relied upon by the Commissioner in the impugned orders have no relevance as Geetanjali Woolens Mill s judgment was in respect of customs duty and was only concerned with the tariff item and not with respect to the excisable goods as defined under Section 2(d) of Central Excise Act, 1944. The bagasse, which emerges as a residue of sugarcane, admittedly, is a waste product and this bagasse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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