TMI Blog2019 (5) TMI 1095X X X X Extracts X X X X X X X X Extracts X X X X ..... aid down that bagasse is agricultural waste of sugarcane and the waste and residue 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 production. Bagasse is not goods but merely a waste or by-product, therefore Rule 6 of CENVAT Credit Rules, 2004 is not applicable in the present case. Bagasse is bound to come into existence during the crushing of the sugarcanes and is an unavoidable agricultural waste. Credit allowed - appeal allowed - decided in favor of appellant. - Excise Appeal No. 53276 of 2018 [SM] - Final Order No.50705/2019 - Dated:- 17-5-2019 - MR. RACHNA GUPTA, MEMBER (JUDICIAL) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellants that iron ore fines are not distinct to iron ore, rather, these are the residual material emerging on the processing of iron ore. Thus, these are nothing more than a waste product during the manufacture of the final product of the appellant i.e. sponge iron. Hence, cannot be considered as the exempted goods and as such, Rule 6 (2) of CCR, 2004 is not attracted nor arises the question of imposition of penalty and recovery of interest. The orders under challenge are therefore, prayed to be set aside. 4. Appellant has relied upon the following case laws:- (i) Union of India Others vs. DSCL Sugar Ltd. reported in 2015 (322) ELT 769 (S.C.). (ii) Rallis India Ltd. vs. Union of India rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as follows:- 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 exempted services, or input service used in or in relation to the manufacture of exempted goods and their clearance upto the place of removal or for provisions of exempted service except in the circumstances mentioned in sub-rule(2): Provided that the CENVAT credit on inputs.............. Explanation 1:- For the purposes of this rule, exempted goods or final products as defined in clauses (d) and (h) of Rule 2 shall included non-excisable goods cleared for a consideration from the factory. 7.2 It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e used for manufacturer of final product. No extra procedure is required for emergence of iron fines. Hence, the fines cannot be called as manufactured product. The above decision of Hon ble Apex Court shall squarely cover the facts and circumstances of present case. The Board s Circular dated 25.04.2016 has no application on the facts of the instant case for two reasons. Firstly, no Circular can override the Rules as well as the law laid down by the Hon'ble Supreme Court and the orders of this Tribunal, and secondly, the said Circular was issued on 25.04.2016 i.e. on a later date, whereas the period in dispute is March, 2015 to June, 2015. 9. Further, the issue is no more res-integra. 10. The Tribunal at ..... X X X X Extracts X X X X X X X X Extracts X X X X
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