2026-VIL-1648-CESTAT-MUM-CE
  1. Home
  2. 2026-VIL-1648-CESTAT-MUM-CE

CENTRAL EXCISE CESTAT Cases

Central Excise - Applicability of Rule 6 of CENVAT Credit Rules, 2004 to clearance of organic manure emerging as by-product in manufacture of sugar and molasses - Appellant crushed sugarcane resulting in sugar juice, molasses, bagasse and press mud, with press mud and spent wash generated during purification mixed and left to result in organic manure, cleared without payment of duty on the basis that it is a waste product - As separate accounts of common inputs and input services towards dutiable and exempted final products were not maintained, department alleged the appellant was required to reverse CENVAT credit attributable to 6% of the value of such exempted goods under Rule 6(3)(i) - Whether the appellant is required to pay the CENVAT demands in respect of clearances of organic manure without payment of duty, and whether the impugned orders confirming such demands are legally sustainable - HELD - Bagasse, press mud, boiler ash and other organic waste emerging as waste or by-product fall outside the scope of Rule 6, the amendment to Rule 6 having the effect of treating such by-product as exempted goods but not as manufactured goods, since its nature remains that of waste or residue and not a final product. Provisions of Rule 6(3) apply only where a manufacturer is engaged in manufacture of a dutiable final product as well as an exempted final product using common Cenvat inputs, and by-products which merely emerge as waste or residue during manufacture do not fall within the definition of manufacture - Once a product is established to be a by-product, demand under Rule 6 will not sustain. Organic manure in the present case emerges by physical mixing of two by-products, namely press mud and spent wash, and the settled position applicable to such by-products squarely applies – The impugned order is set aside and appeals are allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?