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of <h1>Duty demand on waste products bagasse and press mud cannot sustain under excise law</h1> <h3>M/s. Rajashree Sugars and Chemicals Ltd. Versus Commissioner of Central Excise & Service Tax</h3> CESTAT Chennai held that duty demand on waste products bagasse and press mud cannot sustain. Following precedent in Ponni Sugars case, the tribunal ruled ... Excisability of waste product - Requirement to pay the duty at the prescribed rates on the value of exempted goods namely Bagasse and Press Mud - HELD THAT:- The issue has already been decided by us in the case of M/S. PONNI SUGARS ERODE LTD. VERSUS THE COMMISSIONER OF GST & CENTRAL EXCISE, SALEM [2024 (5) TMI 3 - CESTAT CHENNAI] where it was held that 'impugned demand cannot sustain since Press mud is no different from Bagasse, which is also a waste product, which is also a result of the manufacturing process of a different product and, consequently, the impugned demand cannot sustain.' Thus, the present demand against the appellant cannot sustain - the impugned order set aside - appeal allowed. Issues involved:The issue involved in the judgment is whether the appellant was required to pay duty on the value of exempted goods, namely Bagasse and Press Mud.Comprehensive details of the judgment:1. Facts and Background:The appellant, engaged in the manufacture of sugar, utilized Bagasse and Press Mud in their manufacturing process. The Bagasse and Press Mud fell under Tariff Heading No. 2303 20 00 of the Central Excise Tariff Act, attracting a NIL rate of duty. The appellant availed cenvat credit on inputs and services for their final products, Sugar, and Molasses.2. Show Cause Notices and Order:Show Cause Notices were issued to recover an amount equal to 6% of the value of Bagasse and Press Mud. The original authority confirmed the demands proposed in the notices, leading to the filing of the present appeal.3. Key Issue:The main issue for consideration was whether the duty was payable on the value of exempted goods, Bagasse, and Press Mud.4. Precedent and Decision:Referring to a previous case involving M/s. Ponni Sugars Erode Ltd., it was established that Bagasse was not considered a manufactured final product. The judgment highlighted that Bagasse, being an agricultural waste and residue, did not qualify as a manufactured product. The obligation of reversing Cenvat Credit under Rule 6(1) of the Cenvat Credit Rules, 2004 was deemed inapplicable to Bagasse.5. Judgment and Conclusion:Based on the precedent and legal analysis, the Tribunal concluded that the demand against the appellant could not be sustained. The impugned order was set aside, and the appeal was allowed with any consequential benefits as per the law.This judgment clarifies the treatment of Bagasse and Press Mud as exempted goods, emphasizing that Bagasse, being an agricultural waste, does not attract duty payment obligations under the Cenvat Credit Rules.
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