TaxTMI 
TaxTMI 
2019 (12) TMI 519
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....ufacturer of sugar and molasses. During the course of manufacturing activity, the appellant also generates electricity. The electricity is exempt from payment of duty and the same has been sold outside the factory. Therefore, Revenue is seeking an amount @ 6% is payable by the appellant in terms of Rule 6(3) of the CENVAT Credit Rules, 2004 as appellant is not maintaining separate account for usage of the inputs and input services used for manufacture of electricity. In these terms, two show cause notices were issued to the appellant after 01/03/2015 and demand @ 6% of the value of the electricity was confirmed in terms of Rule 6(3) of the CENVAT Credit Rules, 2004. Against the said order, the appellant is before me. 3. Learned Counsel for....
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....o generated is partly used for the manufacturing process within the factory and partly sold out to Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL). The case of the department is that the electricity sold out to the electricity company is liable to payment of 6% amount in terms of Rule 6(3)(i) of Cenvat Credit Rules, 2004." and this Tribunal observed as under: "4. We have carefully considered the submissions made by both sides. We find that though electricity can be considered as exempted goods as non-excisable but the facts of the present case is that the electricity is generated from by-products, i.e. bagasse, which is neither a dutiable goods nor liable for payment of 6% in terms of Hon'ble Supreme Court judgement in the c....
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....ofar as this fact has been admitted by the Assistant Commissioner as well as Commissioner, Central Excise, Lucknow vide letters dated 30-1-2013 and 21-2-2013, respectively. In order to become any goods to be an 'excisable goods', it has to fulfil the following conditions : "(1) Goods must be manufactured; (2) Must be specified in the First or Second Schedule of the Central Excise Tariff, (3) It must be subjected to tariff." 26. Admittedly, none of these conditions are attracted in the instant case insofar as electrical energy, which is mentioned in Chapter 27 of the Central Excise Tariff Act, covers only those electrical energy which are generated from mineral fuels, mineral oils and products of their distillation, bituminous, subst....
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....the instant case, no direct inputs are involved nor any input services have been availed/used and the Commissioner, Central Excise, without any basis observed that the petitioners have admitted that they have availed the Cenvat credit on inputs and input services used in relation to generation of electricity. The petitioner has only used bagasse as raw material which is a waste product, as already held by this Court in writ petition No. 11791 of 2010 and no other inputs or input services has ever been used by the petitioner for generation of electricity which was only generated from bagasse. 34. For the discussions made hereinabove, it is clear that Geetanjali Woolens Mill judgment relied upon by the Commissioner in the impugned orders ha....