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TMI Blog2019 (2) TMI 1384X X X X Extracts X X X X X X X X Extracts X X X X ..... planation 1 inserted to Rule 6(1) of Cenvat Credit Rules 2004 with effect from 01.03.2015 is held to be applicable to the electricity sold by the appellant that was being generated from bagasse, a waste product of sugar manufacturing, and imposition of duty liability thereon by invoking Rule 6(3A) of Cenvat Credit Rules 2004 is under challenge before this Tribunal. 2. Factual backdrop of the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been liable to pay 6% duty on the value of such exempted goods sold by it. The appellant was put to show-cause, matter was adjudicated upon and upon confirmation of the duty demand in the order-in-original and Order-in-Appeal this appeal has been preferred. 3. In the memo of appeal and during course of hearing of appeal, the ld. Counsel for the appellant submitted that department itself had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... il, phosphoric Acid, magnafloc, PP bags, goods transport services, manpower supply services, maintenance and repairs services were all used for manufacture of sugar and primary use of generation of electricity, use of bagasse which is a waste product and non-excisable goods, concerning which reply furnished by the appellant in response to such show-cause but that was not acceptable to the departme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit of such inputs and input services having nexus with generation of electricity sold. 6. Heard from both sides at length. Perused the case records and the relevant decisions cited by the adversaries which are mostly related to the incidence prior to the insertion of proviso-1 to Cenvat Credit Rules wef. 01.03.2015 except Jakarya Sugars Ltd. Admittedly electricity, though not found in tangib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s neither a dutiable goods nor liable for payment of 6% in terms of Hon'ble Supreme Court judgment passed in DSCL Sugar Ltd. (supra). 7. In due obedience to the judicial precedent emerged from the decision of Jakarya Sugars Ltd. (supra) covering post amendment period, it can be said that the duty demand made against such sale of surplus electricity manufactured through waste product is not su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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