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2019 (7) TMI 631

of M/S. BANNARI AMMAN SUGARS LTD. VERSUS THE COMMISSIONER OF G.S.T. & CENTRAL EXCISE, SALEM COMMISSIONERATE [2018 (11) TMI 1449 - CESTAT CHENNAI] where it was held that 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 intend to manufacture press mud. Demand do not sustain, as it is a natural by-product - appeal allowed - decided in favor of appel .....

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ers of this Bench, I find the assertion of the Ld. Consultant for the appellant to be correct. While deciding identical issue for an earlier period in Appeal Nos. E/41850-41852/2018, vide Final Order Nos. 42961-42963/2018 dated 16.11.2018, this Bench observed as under : 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 include non-excisable goods cleared for a consideration from the facto .....

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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 goods which find entry in Central Excise Tariff Act (CETA), 1985. The interpretations drawn by various courts in .....

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oduct 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 are allowed with consequential benefits, if any, as per law. 8. The issue involved in the case on hand being identical, the abo .....

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