Bagasse Not Manufactured Goods, Rule 6 CENVAT Reversal Not Applicable: CESTAT Ahmedabad

Commissioner Vs Shree Khedut Sahakari Khand Udyog Mandli Limited (CESTAT Ahmedabad) The CESTAT Ahmedabad dismissed two appeals filed by the Revenue and upheld the Commissioner (Appeals)’ orders setting aside demands of Central Excise duty, interest, and penalties raised against a sugar manufacturer for non-reversal of CENVAT credit on clearance of bagasse. During an audit, the department found that the assessee had cleared bagasse, generated during the manufacture of sugar, without payment of duty and without maintaining statutory records or reflecting its production and clearance in ER-...