2018 (9) TMI 1913

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.... Mohanty This appeal is directed against the impugned order dated 14.03.2018 passed by the Commissioner (Appeals), Central Excise, Pune. 2. Brief facts of the case are that the appellant is engaged in the manufacture of Sugar & Molasses, falling under Chapter 17 of the Schedule to the Central Excise Tariff Act, 1985. For manufacture of sugar and molasses, sugar cane is used as a main raw mater....

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.... has allowed the appeal in favour of the respondent herein, holding that Bagasse and Press-mud are non-excisable goods and accordingly, the respondent herein is not liable to pay the amount under Rule 6 ibid. 3. Revenue has contended that since the period of dispute is from March 2015 to June, 2017, the case of the respondent is covered under the provisions of amended Rule 6 ibid, where under an....

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....ture of sugar cannot be considered as final product in as much as the respondent had never intended to manufacture those byproducts and the same emerges involuntarily during the process of manufacture of the final product. With regard to consideration of waste/by-products as final product of the manufacturer, the Hon'ble Bombay High Court in the case of Rallies India Ltd. Vs. Union of India - 2009....

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....fective from 01.03.2015. Since bagasse and press mud removed from the factory are excisable goods, classified under Chapter 23 of the Tariff Act, the circular dated 25.04.2016 relied upon by revenue cannot sustain the demand in as much as explanation 1 appended to Rule 6ibid only clarified that the final product defined in clauses (d) and (h) of rule 2 shall include non-excisable goods cleared for....