TMI Blog2018 (10) TMI 1151X X X X Extracts X X X X X X X X Extracts X X X X ..... any excise duty. The Hon’ble Apex Court further clarified that since it is not a manufacture, Rule 6 of the Cenvat Credit Rules shall have no application. This rule was amended w.e.f. 01.03.2015 - however, since the main condition for Rule 6 is still, “obligation of a manufacturer or producer of final products”, it doesn’t extend to by- products released during the process of manufacture of main product that too without involvement of any such activity, which may be called as manufacture. Thus, irrespective of the amendment, there arises no liability upon the appellant to pay the duty as demanded for the period w.e.f. September, 2014 to February, 2015, nor for the reversal of the credit as demanded for the period June, 2015 to March, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and are availing credit of duty paid on inputs, capital goods and input services used in manufacture of their final products under Rule 3 of Cenvat Credit Rules, 2004 (CCR). Beside the manufacture of said final products, the products called bagasse press-mud are also cleared by the appellant against the consideration. Resultantly, show cause notices as above were issued in respective appeals raising the demand as recovery of Central Excise Duty amounting to ₹ 12,22,586/- ₹ 16,53,248/- on the sale of said bagasse and press-mud in terms of Rule 6(3) (i) and erstwhile Rule 6(3)(a) of CCR read with Section 11A of Central Excise Act, 1944 (CEA). The appropriate interest in terms of Rule 14 of CCR and Rule 11AA of CEA alongwith pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies I am of the opinion as: 7.1 The moot question in the given circumstances is as to whether the impugned waste invites the payment of excise duty in accordance of Rule 6 (3) of CCR, 2004. 8. The perusal of case laws as impressed upon by the appellant reflects that the issue herein is no more res integra. The Hon ble Apex Court in the case of Union of India vs. DSCL Sugar Ltd - 2015 (322) ELT 769 has held that products like bagasse and press-mud do not qualify the definition of Section 2F of CEA and as such are not being a manufacture. These are only an agricultural waste and residue which itself is not the result of any process and in the absence of manufacture, there cannot be any excise duty. The Hon ble Apex Court further clarifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terms of Rule 2(d) and 2 (h) as read below:- (d) exempted goods means excisable goods which are exempt from the whole of the duty of excise leviable thereon, and includes goods which are chargeable to Nil rate of duty.... (h) final product means excisable goods manufactured or produced from input, .... 8.2 Since the main condition for Rule 6 is still, obligation of a manufacturer or producer of final products , it doesn t extend to by- products released during the process of manufacture of main product that too without involvement of any such activity, which may be called as manufacture. 9. In view thereof, I am of the opinion that irrespective of the amendment, there arises no liability upon the appellant to pay the dut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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