Case Law Details
Ponni Sugars (Erode) Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai)
CESTAT Chennai held that levy of excise on bagasse and press mud was under litigation, hence the amount of credit reversed under Rule 6(3A) of CENVAT Credit Rules, 2004 has been reversed under protest and refund claim of such reversal done under protest is not hit by time-bar.
Facts- The appellant filed refund claim for refund of the payment made by them under Rule 6 of CENVAT Credit Rules, 2004 on clearance of the waste products namely bagasse and press mud which emerged during the course of manufacture of sugar.
According to appellant on being intimated by the department that they are not eligible to avail credit on common inputs and input services in regard to bagasse and press mud, they reversed the credit as under Rule 6(3A) of CENVAT Credit Rules, 2004.
Later, the Hon’ble Supreme Court in the case of Union of India Vs. DSCL Sugar Ltd. reported in 2015 (322) ELT 769 (SC) held that bagasse and press mud are non-excisable products and that no duty is payable on these items.
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