2021 (7) TMI 851

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.... for the Respondent ORDER Brief facts are that appellant is engaged in manufacture of rectified spirit, neutral spirit, de-natured spirit and fusel oil. In the process of distillation 'spent wash' emerged as waste. From another Unit which was manufacturing sugar/molasses, the waste product 'press mud' emerged. They cleared 'press mud' and 'spent wash' from their factory to their bio-compost Unit....

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....rned consultant Shri P.C. Anand appeared and argued the matter. 3. He submitted that the department has issued the show-cause notice alleging that the appellant had used common inputs for the manufacture of spent wash and press mud and that they have to reverse the proportionate credit under Cenvat Credit Rules. It is submitted by him that the appellant has not consciously manufactured these item....

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.... as "non-excisable goods" which find entry in Central Excise Tariff Act [CETA], 1985. The interpretations drawn by various courts including the Hon'ble Supreme Court and also the clarifications issued by the Board only lead to the conclusion that all non-excisable goods are wastes, but it may be a case that all wastes are non-excisable. Non-excisable goods are treated as exempted goods by virtue o....

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....t it should figure out as a 'non-excisable goods' per se. Therefore, I am of the view that press mud cannot be compared with other by-products like bio-compose or even Bagasse for that matter. Moreover, from a bare reading of Explanations 1 and 2 (supra), I find that the press mud does not fit into the definition of "exempted goods", as defined under 2(d) of CCR because it is not an excisable good....