2019 (5) TMI 1095

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....t towards payment of duty on their final products. Department observed that while using the said input of iron ore, the appellants are manufacturing dutiable final products, as well as the exempted goods i.e. iron ore fines, but were not maintaining the separate accounts for the receipts, consumption and inventory of the inputs as is required in accordance of Rule 6 (3) of Cenvat Credit Rule, 2004. Resultantly, it was alleged that during the period from April 2015 to March, 2016, an amount of Rs. 4,29,153/- has not been paid by the appellants. The same was proposed to be recovered vide show cause notice No.801 dated 03.05.2016. The proposal was initially confirmed vide Order No.29 dated 27.02.2018. The appeal thereof was dismissed vide the ....

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....eported in 2016 (340) ELT 526 (Tri. - Del.) (vii) Commissioner of Central Excise, Raipur vs. Anjani Steels Pvt. Ltd. reported in 2013 (290) ELT 715 (Tri.- Del.) 5. Ld. D.R. on the other hand has justified the order under challenge. 6. It is submitted that the subsequent circular of board bearing No.1027/15/2016-CX dated 25.04.2016 clarifies that "bagasse" cleared for consumption from the factory need to be treated like exempted goods for the purpose of reversal of credit of input in terms of Rule 6 of Cenvat Credit Rules, 2004. It is impressed upon that there seems no infirmity in the order under challenge. Appeal is prayed to be dismissed. 7. After hearing both sides, we are of the opinion as follows:- 7.1 The sole bas....

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....able to "Nil" rate of duty; (h) "final products" means excisable goods manufactured or produced from input, or using input service;" 8. The Hon'ble Supreme Court's decision in the matter of DSCL Sugar Ltd. (supra) has clearly laid down that bagasse is agricultural waste of sugarcane and the waste and residue of agricultural products, during the process of manufacture of goods cannot be said to be result of any process. There is no manufacturing process involved in Bagasse's production. "Bagasse" is not 'goods' but merely a waste or by-product, therefore Rule 6 of CENVAT Credit Rules, 2004 is not applicable in the present case. "Bagasse" is bound to come into existence during the crushing of the sugarcanes and is an unavoidab....