2000 (7) TMI 124

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....acture of products which are not charged to duty along with products which are chargeable to duty and take credit of duty on inputs used in or in relation to the manufacturer of the two categories of the final products and whether contained in the said final products or not, the manufacturer shall pay an amount equal to 8% of the price of the second category of the final product at the time of their clearance from the factory. 2.The Assistant Commissioner of Central Excise, Rampur Division initiated proceedings against the appellants and vide his order-in-original dated 29-5-98 confirmed an amount of Rs. 1,16,959.40 in terms of the provisions of Rule 57CC(1) for the bagasse cleared by them at 'Nil' rate of duty during the period from Mar....

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....herefore an amount equivalent to 8% of the value of the bagasse is liable to be paid by the appellants in terms of the provisions of Rule 57CC(1). As regards the contention relating to the application of the provisions of Rule 57D(1), the ld. SDR submitted that these provisions have no application since in the present case the Modvat credit availed on the inputs is neither being denied nor it is being varied. Here, the applicants have been asked to pay an amount under Rule 57CC. The provisions of Rule 57CC are independent of those of Rule 57D. 4.I have carefully considered the submissions made before me. As already stated the CEGAT in its order dated 9-12-99 in an identical case has set aside the order for payment of an amount under Rule....

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....tage only and its use has no relevance to the stages occurring either prior to or after its application or use in the manufacturing process. Therefore, all the inputs are used in or in relation to the production of sugar, molasses and bagasse or any other product emerging in this process. In my view the amount levied under Rule 57CC also cannot be termed as the Central Excise duty. I, however, agree that bagasse cannot be held to be a 'final product' as stipulated in this rule. The product bagasse finds a specific mention under heading No. 23.01 of the Central Excise Tariff. The entry under this heading reads, "Residues and waste from the food industries, including bagasse, other waste of sugar manufacture and oil cakes". Under this heading....