2024 (3) TMI 176

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....Orders-in-Appeal BEL-EXCUS-000-APP-MSC-290 to 291- 2018-19 dated 30.10.2018 passed by the Commissioner of Central Tax (Appeals), Belgaum filed these appeals. Since the issue involved is decided by a common Orders-in-Appeal, the appeals are taken up together for hearing and disposal. The details of the appeals are as under: Sl. No. Appeal No. Order-in-Appeal No. Amounts involved Duty (Rs.) Penalty (Rs.) 1 E/20041/2019 BEL-EXCUS-000- APP-MSC-290 to 291-2018-19 dated 30.10.2018 1,77,41,233/- 17,74,123/- 2 E/20042/2019 1,08,63,557/- 10,86,358/- 2. Briefly stated the facts of the case are that the appellants are engaged in the manufacture of sugar, molasses, rectified spirit/ENA, denatured spirit, denatured ethanol falling under ....

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....final products. They have paid service tax under GTA and used the Cenvat credit to pay duty on sugar and molasses; Electricity is produced from steam (being non-excisable), which is produced by boiling water in the boilers by using bagasse as fuel. A small portion of electricity so produced is sold to power distribution companies. Since electricity is produced from steam, which is not an excisable product, the provisions of Rule 6(1) and Rule 6(2) under Cenvat Credit Rules, 2004 do not apply; the Hon'ble Supreme Court of India in the case of Gularia Chini Mill Ltd. Vs. Union of India, upheld the decision of Allahabad High Court dismissing the departmental appeal; that bagasse being the only input for manufacture of electricity and since bag....

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.... amounting to [manufacture; or] (iii) which in relation to the goods specified in the Third Schedule, involves packing or repacking of such goods in a unit container or labelling or relabelling of containers including the declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer; and the word "manufacture" shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in their production of manufacture on his own account;" 9. The Revenue sought to cover the case under sub-clause (ii) as per which the process which is satisfied in....