Circular No. 730/46/2003-Central Excise
31st July,2003
F. No. 387/S/108/02-JC
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Subject: – Excisability of Press Mud arising during manufacture of sugar – Adjudication of cases regarding………
A number of asessees are engaged in the manufacture of sugar. During the manufacture of sugar the press-mud comes out as waste. The department has been contending that the press-mud is an excisable commodity and is required to pay the duty leviable thereon. On the other hand, the Tribunal in their various judgments has held that the assesses in question are manufacturing sugar, and press-mud is only a residual waste and not a by-product and is not marketable and hence not excisable.
2. Considering the various arguments sent by various Commissionerates, the Department preferred Civil Appeals in the said matter and accordingly Circular No. 543/39/2000-CX dated 01-09-2000 was issued wherein it was directed that, to avoid multiplicity of litigation, protective demands be issued but kept in Call Book pending final decision of the Supreme Court about the excisability of press-mud.
3. The Supreme Court has now decided these civil appeals and held that press-mud is not excisable as the Department has failed to product any evidence on marketability of press-mud. [reported in 2003(152)ELT 21(SC)]
4. The issue has been examined and it has been decided to accept the verdict of Supreme Court. You are requested to take decision accordingly in the pending cases.
5. Receipt of circular may kindly be acknowledged.
6. Hindi version follows.
(SUNGITA SHARMA)
DIRECTOR(REVIEW)
