2025 (9) TMI 1465

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....ioner (Appeals), Panchkula, first dated 09.02.2021 in respect of M/s Singhal Industries and its partner Shri Rajesh Jain, and second dated 09.03.2021 in respect of M/s Galzn Wire Private Limited and its director Shri Rakesh Jain, vide which the learned Commissioner (Appeals) has rejected the appeals of the appellants and upheld the orders of lower authority. Since the issue involved in all these appeals is identical, therefore, all four appeals are taken up together for discussion and decision. For the sake of convenience, the facts of the Appeal No. E/60156/2021 of M/s Singhal Industries are taken. 2. Briefly stated facts of the present case are that the appellant is engaged in the manufacture of Zinc Ingots and Zinc Sulphate fertilizer....

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....epartment issued the Show Cause Notice to the appellant, and after following the due process, the learned Adjudicating Authority confirmed the demand along with interest and equal penalty; a penalty under Rule 26 of the Central Excise Rules was also imposed on Shri Rajesh Jain, the partner of the appellant. The same were also upheld by the learned Commissioner (Appeals). Hence, the present appeals. 3. Heard both the parties and perused the material on record. 4. The learned Counsel for the appellant submits that the impugned order is not sustainable in law and is liable to be set aside in view of the judgment of Hon'ble Supreme Court in the case of Union of India vs. Indian Sucrose Limited [Order dated 04.03.2022 in SLP(C) No. 1700/20....

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....es and perusal of the material on record, we find that this issue involved in these appeals is no more res integra and has been settled by the Hon'ble Supreme Court in the case of Union of India vs. Indian Sucrose Limited (supra) which has been subsequently followed by the Tribunal in the case of Mahesh Chemicals Allied Industries (supra) as well as in the case of Shri Ram Ago Chemicals Pvt Ltd (supra) wherein this Tribunal has allowed the appeals of the appellants-assessees. Here, it is pertinent to reproduce the relevant findings of the Tribunal in the case of Mahesh Chemicals Allied Industries (supra), which are reproduced herein below: "6. After considering the submissions made by both the parties and perusal of the material on....

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....he Hon'ble Supreme Court vide its order dated 04.03.2022 has held that Circular dated 25.04.2016 is unsustainable in law as bagasse is non-excisable goods to which cenvat credit has no application. It is pertinent to note that subsequent to the decision of the Hon'ble Supreme Court in the case of Union of India Vs. Indian Sucrose Limited (supra), the Board has issued fresh Circular No. 1084/05/2022-CX dated 07.07.2022 and has rescinded the Circular dated 25.04.2016 on the basis of which, the entire demand was created. Here, it is pertinent to reproduce the Circular dated 07.07.2022, which is reproduced herein below: "Circular No. 1084/05/2022-CX dated 07-07-2022 F.No. CBIC-110267/33/2022-CX-VIII SECTION-CBIC G....

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....rmed as 'manufacture'. Similar conclusion was also drawn by the Hon'ble High Court of Bombay in the case of M/s Hindalco Industries Ltd. Vs. Union of India [(2015 (315) E.L.T.10 (Bom.)] in relation to dross and skimming of aluminium, zinc or other non-ferrous metals. 4. The issue again came before the Hon'ble Supreme court in the case of Union of India Vs. M/s. Indian Sucrose Limited [SLP(C) No. 1700/2021], wherein the Hon'ble Supreme Court vide its judgment dated 04.03.2022, referred to its observations in the Union of India vs. M/s. DSCL Sugar Ltd & Ors. (supra) holding that Bagasse is non-excisable to which the CENVAT Credit Rules have no application, and held that the Circular dated 25.04.2016 is unsustainable i....