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TMI Blog2019 (2) TMI 552X X X X Extracts X X X X X X X X Extracts X X X X ..... sugar and molasses on payment of Central Excise duty falling under Chapter 17 of the Schedule to the Central Excise Tariff Act (CETA), 1985. They are availing CENVAT credit under CENVAT Credit Rules, 2004. They are also engaged in the manufacture of electricity, which is used captively for manufacture of excisable goods and the excess/surplus quantity of electricity is sold to outside power supply agencies for a consideration without payment of duty, as no rate of duty has been prescribed in the CETA, 1985. Therefore, CENVAT credit involved input and input services related to that quantity of electricity sold to outside agencies is not eligible to the appellant. The appellants were issued with show-cause notice dated 31.3.2016 to demand an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the apex court in the case of Gularia Chini Mills vs. UOI: 2015 (34) STR 175 (SC). He also submitted that provisions of Rule 6 of CENVAT Credit Rules, 2004 is not applicable in respect of steam cleared to sister concern for captive consumption and electricity sold outside the factory of the appellant as bagasse which is used as an input in generation of steam and electricity is neither excisable input nor exempted input. He further submitted that appellant has not availed any credit either on bagasse or on sugarcane or on any input services as alleged by the Department and hence, the very question of reversal of proportionate credit does not arise. Further, the department has failed to identify the input services which are used in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... find that the issue involved in the present appeals is no more res integra and has been settled by the decision of the Allahabad High Court in the case of Gularia Chini Mills cited supra which has been approved by the Hon'ble Supreme Court in the case of UOI vs. M/s. DSCL Sugar Ltd. cited supra. Further, the Division Bench of the Tribunal in the case of Jakarya Sugars Ltd. cited supra has also considered the same issue and after relying upon the judgment of the Allahabad High Court in the case of Gularia Chini Mills has held that in the generation of electricity from bagasse, no other input or input service is used and therefore, the electrical energy is neither excisable under Section 2(d) of Central Excise Act, 1944 nor exempted goods an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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