2024 (5) TMI 193

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....r, there emerges a product called Bagasse at the milling stage. Bagasse falls under Tariff heading No.2303 20 00 of Central Excise Tariff Act, 1985 (hereinafter referred to as 'CETA') and attracts NIL rate of duty. The bagasse was captively consumed in their Co-Gen plant for generation of electricity (non-dutiable) and part of the power so generated was consumed captively in the sugar plant and the rest transmitted / supplied to Tamilnadu Electricity Board grid. Similarly Press Mud emerges as Waste at a subsequent stage of crushing and is captively used for the manufacture of Vermi-compost which is sold outside as Bio-Manure. Press Mud also called a Filter Cake falls under Tariff Heading No.2303 20 00 of CETA attracts NIL rate of duty. RSCL....

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....s. The only issue that arises for our consideration is, "whether the appellant was required to pay the duty at the prescribed rates on the value of exempted goods namely Bagasse and Press Mud?" 4. After hearing both sides we find that the above issue has already been decided by us in the case of M/s. Ponni Sugars Erode Ltd. Appeal No.41487 of 2017, Final Order Nos.40497 - 40498/2024, dated 24.04.2024. In the above case, after hearing both sides, it has been held as under: 10. We have heard the rival contentions and carefully perused the orders of lower authorities, documents placed on record and gone through the order of co-ordinate bench in the case of the very same appellant which was relied upon heavily by the Ld. Advocate. We find....

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....of the Cenvat Credit Rules, 2004, has no application. 31. This amendment may have the effect of treating Bagasse to be an exempted goods, but cannot result in Bagasse being manufactured goods, as the nature of Bagasse remains that of an agricultural waste and residue and is not in effect a product. This aspect and character of Bagasse remains unaltered by insertion of Explanation 1. 32. In absence of Bagasse being a manufactured final product, the obligation of a reversal of Cenvat period under Rule 6(1) of the Cenvat Credit Rules, 2004 is not attracted. It has also been noticed that Bagasse has always been an "exempted goods" under Rule 2(d) of the Cenvat Credit Rules, 2004. It has been mentioned in Central Excise Tariff ....