2019 (3) TMI 32

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....1A(1) of Central Excise Act, 1944 and also appropriated the amount of Rs. 2,39,327/- towards the confirmed demand along with interest and also imposed penalty of Rs. 50,000/-. 2. Briefly the facts of the present case are that the appellants are engaged in the manufacture of sugar, denatured ethyl alcohol and bio-compost falling under Chapter subheading 17, 22 and 31 under Central Excise Tariff Act, 1985. During the course of manufacture of sugar, certain wastes such as bagasse, molasses, etc., arises. Bagasse is a waste product resulting from crushing of sugarcane. The appellant utilized this bagasse for heating the boilers in their Cogen to produce steam and the steam so produced is used for rotating the turbines for generation of elect....

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.... demand by holding that the appellant can reverse the proportionate credit and confirmed the demand only of Rs. 10,97,718/- on the basis of quantification made by the Department. 3. Heard both the parties and perused the records. 4. Learned counsel for the appellant submitted that the impugned order demanding the credit of Rs. 10,97,718/- is not sustainable in law as the same has been arrived at by following the formula wrongly. He further submitted that as per the appellant the proportionate amount required to be reversed is Rs. 2,39,329/- as per Rule 6(3A) of CCR and the same has already been reversed. He further submitted that the Department has not followed the clarification issued vide Circular No.868/6/2008-CX dated 9.5.2006. He....