Rule 57CC and bagasse as waste: demand failed, and no apparent mistake justified rectification of the final order.

Bagasse cleared without payment of duty was treated as waste arising in sugar manufacture, not as the final product, so Rule 57CC of the Central Excise Rules was held inapplicable to sustain the demand. The Revenue's relied-on precedent was distinguished because it addressed a different question, namely whether bagasse was a manufactured product. On rectification, the Tribunal found no apparent mistake in the final order, as its earlier view had already been upheld by the Supreme Court. The application for rectification was therefore rejected.

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Issues: Whether bagasse cleared without payment of duty attracted Rule 57CC of the Central Excise Rules, and whether any mistake apparent on record existed warranting rectification of the final order.

Analysis: Bagasse was treated as a waste arising during the manufacture of sugar and not as the final product. On that basis, the Tribunal held that the demand based on Rule 57CC could not be sustained against the respondent. The earlier view relied upon by the Revenue was distinguished on the ground that it dealt with a different question, namely whether bagasse was a manufactured product. In view of the Tribunal's earlier decision, as upheld by the Supreme Court, no apparent mistake in the final order was shown.

Conclusion: The application for rectification was rejected and the respondent's stand prevailed.

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