2025 (12) TMI 874

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....ssioner of Central Excise and Customs, Belgaum and Order-in-Appeal No. BEL-EXCUS-000-APP-MSC-292 TO 293-2018-19 dated 25.10.2018 passed by the Commissioner of Central Excise (Appeals), Belgaum. 2. The issue in the present appeals is whether the demand under Rule 6(3)(i) of CENVAT Credit Rules, 2004 based on 6% value of the electricity sold/generated using the by-products / waste products, Bagasse is tenable. 3. The brief facts are the Appellant is manufacturing sugar cane and molasses and availed credit of duty paid on inputs, capital goods and service tax as per CENVAT Credit Rules, 2004 and was filing periodical returns as required. During the scrutiny of the ER-1 returns for the period from March 2015 to December 2015, it is observ....

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.... appeals is similar, both appeals are together taken up for hearing and disposal. 4. When the appeals came up for hearing, the Learned Counsel for the Appellant submits that the issue is squarely covered by the Final Order No. 20388-20401/2024 dated 18.03.2024 of this Tribunal in the matter of M/s Ugar Sugar Works and others, wherein it is held that; "7. The short issue involved in the present appeals are consideration is, whether 6% of the value of the electricity sold, generated out of by-product / waste product viz. bagasse be subjected to demand under Rule 6(3)(i) of the CENVAT Credit Rules, 2004. This Tribunal in the case of Shree Doodhganga Krishna Sahakari Sakkare Karkhane Niyamit (supra) has considered the issue and taki....

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.... m. Venkateshwara Power Projects Ltd. Vs. CCE, 2018 (11) TMI-913 6. The Learned Counsel also submits that in the absence of common usage of inputs or inputs services, the provisions of Rule 6 of Cenvat Credit Rules, 2004 cannot be invoked. In this regard, the Learned Counsel relied on the decisions of Ganga Kishan Sahakari Chini Mills Ltd. Vs. CCE, 2017 (346) ELT-450 and MIRC Electronics Ltd. Vs. CCE, 2015 (38) STR-199. 7. As regards confirming the demand on 6% of the amount under Rule 6(3)(i) of Cenvat Credit Rules, 2004, Learned Counsel submits that even if it is impossible to maintain records of common inputs/input services, the Department suo moto invoked the provisions of said Rule to confirm demand on the 6% amount and su....