TaxTMI 
TaxTMI 
2017 (3) TMI 506
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....nd that it is used for manufacture of exempted goods. The respondent being aggrieved by the order-in-original, filed appeal before the Commissioner (Appeals) who vide impugned order allowed the appeal. Therefore, revenue is in appeal before me. 2. Shri H.M. Dixit, Ld. Assistant Commissioner (AR) appearing on behalf of the Revenue reiterates the ground of appeal. He submits that since the inputs admittedly used exclusively for manufacture and disposal of press mud. Therefore, Cenvat Credit is not admissible. 3. On the other hand, Shri V.B. Gaikwad, Learned Counsel for the respondent submits that in the identical case of the respondent themselves this Tribunal has allowed the credit by dismissing the department s appeal reported as Shre....
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....pplication or usage of those inputs either in or in relation to the manufacture of final products once again. In other words, the commencement of journey of those cenvated inputs used either in or in relation to the manufacturer of final products ends with the emergence of those final pro-ducts along with inevitable wastes. Their usage cannot be traced beyond the first degree. The same inputs cannot be considered to have been utilized or used even indirectly in the manufacture of disputed item viz., bio-compost fertiliser, especially under the factual circumstances that the same came to be manufactured only by adding those two waste materials together. May be those two waste materials contained the trace of certain chemicals with the charac....
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.... spent wash is an inevitable waste product when molasses is treated to bring out ethyl alcohol or denatured spirit. Both press mud and spent wash are exempted from duty by virtue of certain notifications. Bio-compost is the mixture of two waste products viz., press-mud and spent wash and is marketed by the assessee. What is to be seen is as to whether such final product had emerged by using any cenvated inputs either in or in relation to such manufacture of final product. As we have already found that no cenvated inputs or chemicals were used either in or in relation to the manufacture of such exempted final product viz., bio-compost fertiliser, we are of the view that demand made by the Revenue is unsustainable. 18. The learned co....
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.... 5. Following the above decision of the Tribunal in the case of Sahyadri SSK Ltd., (supra), the appeal of the assessee was allowed wherein the Tribunal observed as under: "3. The issue that falls for consideration in the case in hand is whether during the period October 2005 to June 2010, the appellant having paid the service tax on outward transportation of one of the exempted goods press mud , is eligible to avail the service tax credit and use the same for discharging Central Excise duty on service tax liability. It is the case of the Revenue that the press mud being an exempted category of the goods, any services rendered in respect of such goods, service tax paid credit cannot be availed. I find that the Revenue s arguments....