https://www.taxtmi.com/caselaws?id=246140 5% reversal under Rule 6 of the Cenvat Credit Rules, 2002 was held inapplicable to bagasse, press-mud and bio-compost arising incidentally during manufacture of sugar, because they were not independently manufactured final products. The demand rested on a departmental circular dated 28.10.2009, but the circular had already been quashed by the Allahabad High Court. The governing principle stated that waste or residue emerging inevitably in the course of manufacture does not become exempted goods merely because it is marketable, and common inputs used for the dutiable final product do not by themselves justify reversal on such by-products. The 5% reversal demand was therefore not sustainable and the appeals were allowed. en-us Wed, 02 Apr 2014 00:00:00 +0530 Thu, 17 Nov 2016 12:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=246140 5% reversal under Rule 6 of the Cenvat Credit Rules, 2002 was held inapplicable to bagasse, press-mud and bio-compost arising incidentally during manufacture of sugar, because they were not independently manufactured final products. The demand rested on a departmental circular dated 28.10.2009, but the circular had already been quashed by the Allahabad High Court. The governing principle stated that waste or residue emerging inevitably in the course of manufacture does not become exempted goods merely because it is marketable, and common inputs used for the dutiable final product do not by themselves justify reversal on such by-products. The 5% reversal demand was therefore not sustainable and the appeals were allowed. Case-Laws Central Excise Wed, 02 Apr 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=246140