Bagasse as agricultural waste supports exemption for a boiler designed to convert it under the notification.

Bagasse retains its agricultural character because it is produced directly from sugarcane by mechanical crushing, and its emergence in a sugar mill does not change it into industrial waste. For the purpose of Notification No. 205/88, it is treated as agricultural waste on the same footing as other agricultural residues such as rice husk. A bagasse-fired steam generating boiler is therefore a device for converting agricultural waste material, and the exemption under the notification is available.

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Issues: Whether bagasse is agricultural waste for the purpose of Notification No. 205/88 and whether a bagasse-fired steam generating boiler is entitled to the exemption as an agricultural waste conversion device.

Analysis: Bagasse is obtained directly from sugarcane by a simple mechanical process of crushing and retains its agricultural origin even when it arises in a sugar mill. The fact that it emerges in an industrial setting does not alter its character as agricultural waste. The notification referred to agricultural and municipal waste, and bagasse was treated on the same footing as other agricultural residues such as rice husk for the purpose of the exemption.

Conclusion: Bagasse qualifies as agricultural waste, and a boiler designed to use bagasse is a device for converting agricultural waste material. The exemption under the notification is available.

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