TMI Blog2024 (1) TMI 820X X X X Extracts X X X X X X X X Extracts X X X X ..... e these by-products were cleared without payment of duty, the Department alleged that the Appellant manufactured both dutiable and exempted product and hence, they are liable to reverse the Cenvat credit proportional to the value of exempted goods, as per Rule 6 of the Cenvat Credt Rules, 2004. The issue is no longer res integra as the Hon ble Supreme Court in case of UNION OF INDIA VERSUS DSCL SUGAR LTD. [ 2015 (10) TMI 566 - SUPREME COURT] has categorically held that reversal of Cenvat Credit is not warranted in terms of Cenvat Credit Rules, 2004, when the by-product Bagasse is cleared from the factory without payment of duty. Thus, the demands confirmed in the impugned order is not sustainable and accordingly, the same is set as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been upheld by the Hon ble High Court of Punjab Haryana in the case of M/s. Indian Sucrose Limited Vs. Union of India Ors which is now upheld by the Hon ble Supreme Court vide it s Order dated 04.03.2020. He also submits that after the decision of the Hon ble Supreme Court cited above, Board has issued the Circular dated 07/07/2022 clarifying the issue. Accordingly, he prays for allowing their appeal. 3. The Learned AR reiterates the findings of the lower authorities. 4. Heard both sides and perused the Appeal documents. 5. I find that the issue involved in the present appeal is related to reversal of proportionate credit attributable to exempted goods as per Rule 6 of Cenvat Credit Rules, 2004. In the present case, during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods for the purpose of reversal of credit of input and input services, in terms of rule 6 of the CENVAT Credit Rules, 2004. This circular was issued in the background of judgment of the Hon ble Supreme Court in the case of Union of India v. M/s. DSCL Sugar Ltd. [2015 (322) E.L.T. 769 (S.C.)] holding that Bagasse is only an agricultural waste and residue and it is not a result of any process which can be termed as manufacture . Similar conclusion was also drawn by the Hon ble High Court of Bombay in the case of M/s. Hindalco Industries Ltd. v. Union of India [2015 (315) E.L.T. 10 (Bom.)] in relation to dross and skimming of aluminium, zinc or other non-ferrous metals. 4. The issue again came before the Hon ble Supreme court in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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