2013 (5) TMI 242

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....GEMENT Per Rakesh Kumar: The appellant are manufacturer of sugar chargeable to central excise duty. At the stage of crushing of sugarcane for obtaining cane juice, baggase is obtained. According to the department, since baggase is an excisable product, fully exempt from duty, the same has to be treated as an exempted good in terms of definition of this term as given in Cenvat Credit Rules an....

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....unt on the appellant. This order of the Asstt. Commissioner was upheld by the Commissioner (Appeals) except for reduction of penalty to Rs.20,000/- vide order-in-appeal dated 22.2.2011, against which this appeal has been filed. 2. Heard both the sides. 3. Ms. Rashi Sureka, ld. Advocate for the appellant, pleaded that the baggase is an unavoidable waste product which arises in course of crush....

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....er by reiterating the findings of the Commissioner (Appeals). 5. I have considered the submissions from both the sides and perused the records. 6. The only point of dispute in this case is as to whether in respect of clearances of baggase during period from 1.4.2008 to 31.3.2009 an amount equal to 10% of the sale value would be required to be paid in terms of the provisions of Rule 6(3) of t....

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....t of which cenvat credit had been availed is not maintained. In this case, on- going through the show cause notice, I find that the show cause notice does not even mention as to which are the common inputs which are used at the stage of crushing of sugarcane. The show cause notice mentions chemicals viz. Phosphoric Acid, Hydrogen Peroxide, Caustic Soda, Sulphur, etc. but the same are used in the c....