Bagasse is not an excisable final product and cannot attract duty merely because it is listed in the tariff schedule.

Bagasse arising incidentally in sugar manufacture is not a taxable excisable final product merely because it appears in the tariff schedule. The Court relied on its earlier view and the Supreme Court's holding that bagasse is only waste obtained during manufacture, not a final product for central excise duty purposes. As it was not a duty-liable final product, Rule 57CC of the Central Excise Rules, 1944 could not be invoked on that basis. The Tribunal's view granting relief was therefore correct.

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Issues: Whether bagasse is a taxable excisable final product liable to Central Excise Duty, and whether the Tribunal was right in treating it as exempt.

Analysis: The appeal turned on the character of bagasse arising in the manufacture of sugar. The Court noted its earlier view that bagasse and press mud are not taxable items and relied on the Supreme Court's holding that bagasse, though mentioned in the tariff, does not become a final product merely because of such entry. It is only waste obtained during manufacture and cannot be regarded as a final product for the purpose of duty liability or for invoking Rule 57CC of the Central Excise Rules, 1944.

Conclusion: Bagasse is not a taxable excisable final product, and the Tribunal's view granting relief was correct.

Ratio Decidendi: A by-product or waste arising incidentally in manufacture does not become a final product liable to excise duty merely because it finds place in the tariff schedule.

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