2018 (10) TMI 827

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....ble products. It was also alleged that credit is not eligible on certain services. After due process of law, the original authority in respect of allegation of non-maintaining of separate accounts dropped the demand for the period prior to 01.03.2015 but confirmed the demand after 01.03.2015 in respect of Bagasse, Press Mud and Electricity. In respect of wrongly availed credit on capital goods, the proceedings were dropped. In respect of ineligible input services, the adjudicating authority dropped the proceedings partly but, however, confirmed the demand to the tune of Rs. 2,794/- only. Aggrieved, the appellants filed appeals before the Commissioner (Appeals), who upheld the same. Hence, these appeals. 2. On behalf of the appellants, lear....

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....re the Bagasse. After the sugarcane juice is filtered, the waste product, which is Press Mud is obtained. The appellants have not availed any credit on input or input services for these processes. He submitted that the appellants had explained all these facts in their response to the show-cause notice but the authorities below have not given any weight to these submissions. He relied upon the judgment of the Delhi Tribunal in the case of M/s. Ganga Kishan Sahkari Chini Mills Ltd. Vs Commissioner of Central Excise, Meerut reported in 2017 (346) E.L.T.450 (Tri.-Del.) and M/s. Kisan Sahkari Chini Mills Ltd. Vs Commissioner of Central Excise, Lucknow (U.P.) reported in 2012 (286) E.L.T.51 (Tri.-Del.) to argue that in similar set of facts, the ....

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....his regard. The Tribunal in the case of M/s. Ganga Kishan Sahkari Chini Mills Ltd. had occasion to consider similar issue that the assessee has not maintained separate accounts for the production of Bagasse and Press Mud. The observation made by the Tribunal in the said decision is noteworthy and the same is detailed below:- "7. On bare reading of above rules, it is apparent above referred rule shall be attracted only in a situation where manufacturer has availed Cenvat credit in respect of inputs which are used for or in relation to manufacture of final products. Thus, before confirming the demand under Rules 6(3)(i) & 6(3)(ii), the department is required to establish that some Cenvat credit was availed by the appellant in respect of inp....

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.... other decisions relied by the learned counsel for the appellants. It is pertinent to mention that the demand prior to 01.03.2015 has been dropped by the adjudicating authority observing that the requirement to maintain separate accounts would be applicable only to exempted goods prior to such date. That an amendment was brought forth with effect from 01.03.2015, wherein even if there is production of non-excisable goods, the assessee is required to maintain separate accounts. Therefore, after 01.03.2015, the adjudicating authority has confirmed the demand. I find that since there is no credit availed on inputs or input services for products of Bagasse, Press Mud or Electricity even after 01.03.2015, the demand cannot sustain. 8. The learn....