TMI Blog2018 (11) TMI 1449X X X X Extracts X X X X X X X X Extracts X X X X ..... exempted goods” to mean excisable goods which are exempt from the whole of the duty, to also include goods which are chargeable to nil rate of duty and the goods used impliedly suggest a final product - press mud cannot be compared with other by-products like bio-compose or even bagasse for that matter. Moreover, from a bare reading of Explanations 1 and 2 - press mud does not fit into the definition of “exempted goods”, as defined under Rule 2(d) of CCR because it is not an excisable good; nor can it be termed as a final product because it is not manufactured or produced from input or using input service. This is because it is a natural by-product which does not involve any effort nor is it the primary intention of a sugar manufacturer to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Duty Penalty (in Rs.) Period 1. E/41850/2018-SM SOD No. 02/2016 dt. 01.02.2016 O/O No. 8/2017 dt. 23.05.2017 O/A No. 82/2018 dt. 20.04.2018 Duty: 2,06,140/- Penalty: 20,614/- March 2015 2. E/41851/2018-SM SOD No. 05/2016 dt. 02.02.2016 O/O No. 9/2017 dt. 23.05.2017 O/A No. 83/2018 dt. 20.04.2018 Duty: 4,18,228/- Penalty: 41,823/- April 2015 to November 2015 3. E/41852/2018-SM SOD No. 07/2017 dt. 13.04.2017 O/O No. 14/2017 dt. 29.09.2017 O/A No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, in particular, the insertion of Explanation 1 and Explanation 2 to Rule 6(3) of the CCR with effect from 01.03.2015. He contended that the amendment has changed the whole scenario and therefore the Order referred to supra is not applicable. He thus pleads that the impugned Order does not call for any interference. 6. I have considered the rival contentions, perused the documents placed on record and have also gone through the Order of this Bench ( supra ) relied on during the course of arguments. 7.1 Explanations 1 and 2 which are inserted vide amendment dated 01.03.2015, read as under: [Explanation 1. - For the purposes of this rule, exempted goods or final products as defined in clauses (d) and (h) of rule 2 shall incl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after the judgement of the Hon ble Apex Court in the case of Union of India and Ors Vs. M/s. DSCL Sugars Ltd. reported in 2015 (322) E.L.T. 769 (S.C.) had indicated the consequence, at paragraph 4.2, which reads as under: 4.2 Consequently, Bagasse, Dross and Skimmings of non-ferrous metals or any such by-product or waste, which are non-excisable goods and are cleared for a consideration from the factory need to be treated like exempted goods for the purpose of reversal of credit of input and input services, in terms of rule 6 of the CENVAT Credit Rules, 2004. 8.2 The above clarification includes items like Bagasse, Dross and Skimmings of non-ferrous metals or any such by-product or waste which are termed as non-excisable goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted goods , as defined under Rule 2(d) of CCR because it is not an excisable good; nor can it be termed as a final product because it is not manufactured or produced from input or using input service. This is because it is a natural by-product which does not involve any effort nor is it the primary intention of a sugar manufacturer to intend to manufacture press mud. 9. In view of the above, I am of the considered opinion that the amendment heavily relied on by the lower authorities does not cover waste and there being no change with regard to facts, the Order of this Bench in the appellant s own case ( supra ) is squarely applicable; the assessee is not liable to pay any duty and therefore, the demand is set aside. 10. The appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X
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