2014 (4) TMI 577

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....ative Sugar Ltd. and M/s. Chalthan Vibhag Khand Udyog Sahakari Mandali Ltd. have filed written submissions and other appellants are unrepresented. We have taken on record written submissions made by the two appellants. 3. After hearing the Ld. Departmental Representative on the stay petitions filed by all the appellants, we find that the appeals themselves could be disposed of at this juncture, as the issue raised lies in a very narrow compass. Accordingly, we allow the applications for waiver of the pre-deposit of the amounts involved and take up the appeals for disposal. 4. The issue involved in these cases are the appellants herein are manufacturers of VP Sugar and during the said manufacturing process it was held that the appellan....

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....n of India - 2014 (300) ELT 372 (All.). Their Lordships have quashed said circular dt. 28.10.2009 and held that Bagasse has emerged as waste during the crushing of sugarcane for manufacture of final products hence any waste products which emerges during manufacture of sugar does not mean that exempted goods are manufactured even though they are marketable. Since, the basic findings of the lower authorities are on the basis of CBEC circular which has been quashed, we find that the appeals are to be allowed on this ground itself. 7. However, we also would like to record that payment of 5% of the value of Bagasse, Press-mud and Bio-compost is contested regularly. It is very clear from the process of manufacture of sugar that the appellant h....

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....vent the cascading effect of duty. Cenvat Credit is availed in respect of duty paid on the inputs used in the manufacture of final product. At the time of clearance of the goods, the amount of credit being availed would be used for the payment of excise duty. Thus, the credit availed at the first stage would stand recovered at the time of clearance of the exportable goods. In the facts of the present case, Cenvat Credit would have been availed in respect of the input Hydrochloric Acid. The entire Hydrochloric Acid having been used for the manufacture of excisable goods being Gelatin, the credit availed in respect of the inputs would be duly recovered at the time of clearance of the excisable goods being Gelatin. If, as contended on behalf o....