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TMI Blog2019 (7) TMI 2013X X X X Extracts X X X X X X X X Extracts X X X X ..... t is also availing the benefit of Cenvat credit of inputs/input services and capital goods as per the provision of Cenvat Credit Rules, 2004. During the process of manufacture of sugar certain by-products, impurities, waste also arises in the form of bagasse, press mud and 'beat pulp' etc. It has been the contention of the Department that since the beat pulp is being cleared by the appellant without payment of central excise duty and therefore as per the provision of Rule 6 of Cenvat Credit Rules, the appellant should have reversed back the Cenvat credit availed on the common input and input services @ 6% of the value of duty free cleared final product namely beat pulp as per the provision of Rule 6 (3) of Cenvat Credit Rules, 2004. The lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mental Representative in this regard. 3. Having heard both the sides and after perusal of record of appeal, we find that, the matter is no longer res-integra as it has already been decided by Hon'ble Supreme Court that the by-product such as bagasse, press mud, beat pulp does not fall under the category of manufactured product of the appellant and therefore the question of reversal of the Cenvat credit equivalent to 6% of value of such clearances does not arise. This Tribunal in its final decision in the case of Kichha Sugar Company Ltd. versus CGST CC & CE, Dehradun reported in 2018 (10) TMI 1161 - CESTAT NEW DELHI has held as follows :- "7.1 The moot question in the given circumstances is as to whether the impugned waste invites the pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory." Explanation 2: Value of non-excisable goods for the purposes of this Rule, shall be the invoice value & where such invoice value is not available such value shall be determined by using reasonable means consistent with the principles of valuation contained in Excise Act & Rules made there-under. The words "used in or in relation to the manufacture "clarifies that prior to 01.03.2015 this rule is invokable only where there is the activity of manufacture. As already discussed above that the goods in dispute are not the outcome of manufacture. Even after the amendment, Explanation-1 extends exemption in terms of Rule 2(d) and 2 (h) as read below:- (d) "exempted goods" means excisable goods which are exempt from the whole of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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