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TMI Blog2019 (2) TMI 1301X X X X Extracts X X X X X X X X Extracts X X X X ..... e instant matter is the demand of Central Excise duty on the exempted goods i.e. Bagasse, pressmud and composed fertilizer produced during the course of the manufacture of sugar and molasses under Rule 6 of the Cenvat Credit Rules, 2004. The period involved in this matter is March, 2015 to June, 2017. 3. The respondent herein is engaged in the manufacture of sugar and molasses which are cleared on payment of duty. During the course of manufacture of sugar and molasses, by product viz. Bagasse, pressmud and composed fertilizers emerges which is waste, residue by-product or refuse. According to Revenue, the assesee is availing the facilities of Cenvat credit on inputs, input services and capital goods under the Cenvat Credit Rules, 2004. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f inputs and input services as provided in Rule 6 (2) nor paid an amount equal to 6% of the value of exempted goods viz. Bagasse, pressmud and composed fertilizer as provided in Rule 6 (3) ibid therefore the adjudicating authority has correctly confirmed the demand of an amount of Rs. 56,66,177/- with interest and penalty. He further submitted that the reliance placed by the learned Commissioner on the decision of this Tribunal i.e. order No. A/89563- 89568/17/SMB dated 04.08.2017 in the case of M/s Shivratna Udyog Ltd. and others is not correct as the decision of the Hon'ble Supreme Court on which the reliance was placed by the Tribunal while passing the aforesaid order, pertains to the period prior to March, 2017, whereas period covered i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Supreme Court in the matter of DSCL Sugar Ltd (supra) has laid down that Bagasse emerging as residue and waste of sugar, is not a product manufactured and will not come under the definition of "manufacture". 5. Only because an explanation was inserted to Rule 6 ibid vide notification dated 01.03.2015, the Revenue is of the view that Bagasse, pressmud and composed fertilizer being non-excisable goods but capable of being sold for a consideration and has been sold for consideration therefore it would come within the scope of Rule 6. The said explanation to Rule 6 reads as under: "Rule 6(1) The Cenvat credit shall not be allowed on such quantity of inputs used in or in relation to the manufacture of exempted goods or for provision of exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esidue of agricultural products, during the process of manufacture of goods cannot be said to be result of any process. There is no manufacturing process involved in Bagasse's, pressmud and composed fertilizer production. "Bagasse, pressmud and composed fertilizer" is not 'goods' but merely a waste or byproduct, therefore Rule 6 of CENVAT Credit Rules, 2004 is not applicable in the present case. "Bagasse, pressmud and composed fertilizer" is bound to come into existence during the crushing of the sugarcanes and is an unavoidable agricultural waste. 6. A consistent view has been taken by this Tribunal that Rule 6 of CENVAT Credit Rules, 2004 has no application in given facts. For instance, in a recent decision in the matter of M/s Shivratna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that after insertion of explanation in Rule 6(1), even in case of non-excisable goods, the reversal under Rule 6(3) is required. In this regard he referred to the Hon'ble Supreme Court judgment in the case of DSCL Sugar Ltd.(supra). Wherein the Hon'ble Supreme Court has held that in case of non-manufactured/non-excisable goods under Rule 6(3) would not apply and after the amendment in Rule 6(1) by inserting explanation, the ratio of the Hon'ble Supreme Court judgment will not applicable for the period after amendment. On careful consideration of this submission, I find that the issue before the Hon'ble Supreme Court in DSCL Sugar Ltd. was that whether Rule 6(3) is applicable in case of non-excisable goods. However, in the present case all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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