2023 (2) TMI 728

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....ral GST & CX, Latur Rural Range, Nanded Division, holding as follows:- "ORDER i) I confirm an amount of Rs. 66,142/- (Rupees Fourty six thousand one hundred ninety three only) equal to 6% of Sale value of Bagasse and Press mud and to be recovered from them under provisions of Section 11A(1) of the Central Excise Act, 1944 read with Rule 14 of CENVAT Credit Rules, 2004. ii) I confirm the recovery of Interest and to be recovered from them under Section 11AA of Central Excise Act, 1944 read with Rule 14 of CENVAT Credit Rules, 2004. iii) I impose Penalty of Rs. 6,614/- upon them under Section 11AC of the Central Excise Act 1944 read with Rule 15(1) of CENVAT Credit Rules, 2004." 2.1 I have heard Shri J.N. Somaiya, Advocate for the a....

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....uments. 4.2 Both the lower authorities have held that since the appellant has availed CENVAT credit on various inputs going into the manufacture of the final products, and bagasse and pressmud arising during the course of manufacture and are exempt, CENVAT credit cannot be allowed. 4.3 I find that the issue is no more res integra as the question as to whether bagasse is manufactured under the provisions of Section 2(f) of the Central Excise Act, 1944 or otherwise and the CENVAT credit availed on the inputs which are used for the manufacture of sugar has to be denied or otherwise has been settled by the apex Court in the case of DSCL Sugar Ltd. 2015 (322) ELT 769 (SC). Hon'ble Apex Court held as follows: "3. Respondents herein are manufa....

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....ch defines 'excisable goods' and 'manufacture' respectively. Section 2(d) with the said amendment reads as under : Section 2(d) - "excisable goods" means goods specified in [The First Schedule and the Second Schedule] to the Central Excise Tariff Act, 1985 (5 of 1986) as being subject to a duty of excise and includes salt; Explanation - for the purposes of this clause, "goods" includes any article, material or substance which is capable of being bought and sold for a consideration and such goods shall be deemed to be marketable." 7. As per the aforesaid explanation, "goods" would now include any article, material or substance capable of being bought or sold for consideration and as such goods shall be deemed to be marketable. Thus,....

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....se Tariff Act, 1985 would amount to 'manufacture'. Here again, fiction is created by including those goods as amounting to manufacture in respect of which process is specified in the Section or Chapter notices of the First Schedule. 10. In the present case it could not be pointed out as to whether any process in respect of Bagasse has been specified either in the Section or in the Chapter notice. In the absence thereof this deeming provision cannot be attracted. Otherwise, it is not in dispute that Bagasse is only an agricultural waste and residue, which itself is not the result of any process. Therefore, it cannot be treated as falling within the definition of Section 2(f) of the Act and the absence of manufacture, there cannot be any e....