Customs, Excise and Gold Tribunal - Delhi
Cce vs U.P. State Sugar Corpn. Ltd. on 29 November, 2006
Equivalent citations: 2007(116)ECC349, 2007ECR349(TRI.-DELHI)
ORDER M.V. Ravindran, Member (J)
1. This appeal is directed against order in appeal dated 8th October 2004 which rejected the appeal filed by the revenue against the order in original.
2. The issue involved in this case is regarding recovery of 8% of the amount of waste Bagasse and Press Mud cleared by the respondent treating it as an exempted product. The issue involved in this case as rightly pointed out by the counsel appearing on behalf of the respondent and is squarely covered by the judgement of the Hon'ble Supreme Court in the case of CCE, Meerut v. Shakumbari Sugar & Allied Industries Ltd. Division Bench of the tribunal following the judgement of Hon'ble Supreme Court, in final order No. 551-554/03 dated 22/07/2003 held as under:
We find that in this case, the Revenue is invoking the provisions of Rule 57CC of the Central Excise Rules asking for 8% of the value of press-mud and Bagasse. Rule 57CC of Central Excise Rules, 1944 provides that where a manufacturer is manufacturing excisable and exempted goods and were availing the benefit of MODVAT credit in that case in respect of exempted goods the manufacture has to pay 8% of the value of exempted goods. In the present case the goods in question are press-mud and bagasse which are not final product of the manufacturer. Therefore, the provisions of Rule 57CC of the Central Excise Rules, 1944 are not applicable. Further, we find that in the case of M/s Mahalakshmi Sugar Mills Co. Ltd. v. Commissioner of Central Excise-Meerut (Surpa) in respect of Press-mud, the Tribunal specifically held that provisions of Rule 57CC of the Central Excise Rules are not attractive and the appeal filed by the Revenue was dismissed. In view of the decision of the Hon'ble Supreme Court, we find no merit in the appeals. The appeals are dismissed.
3. The revenue moved the Hon'ble Supreme Court in appeal against the order and the Hon'ble Supreme Court vide its order dated 29/08/05 dismissed the appeal filed by the revenue. Subsequent to the appeal being dismissed. Central Board of Excise and Customs issued a Circular dated 9th July, 2004 which reads as under:
F. No. 384/65/2003 JC Government of India Ministry of Finance Department of Revenue Central Board of Excise & Customs New Delhi 9th July 2004 To, The Commissioner of Central Excise & Customs, Meerut II.
Sub. SLP (C) No. Civil Appeal No. D27628/03, CE Meerut -II v. Kichha sugar Col. Ltd.
Sir, I am directed to refer to your letter no. V (1) 10 CEGAT/Kichha Sugar Co. Ltd. Dated 22.04.2004 recommending for filing Civil Appeal against CESTAT/ CEGAT order No. 551-554/03-B dated 22.07.2003 on the above subject and to say that the Hon'ble Supreme Court, vide its order dated 20.02.2004 has dismissed the Appeal.
A original certified copy of the said Supreme Court order is enclosed herewith for your information and further necessary action. Board has decided not to review the SC order.
Yours faithfully, Sd/-
(Mahendra Pal)
5. Accordingly, it is seen that the issue is now squarely covered in favour of the respondent by the order of the Hon'ble Supreme Court and by the circular of CBEC. Hence, in view of this, I do not find any reason for any interference in the impugned order. Appeal is dismissed. Accordingly, the cross-objections filed by the respondent are also disposed of.
(Dictated and pronounced in the open court)