Union Of India vs Dscl Sugar Ltd. on 24 July, 2015
8. The Hon'ble Supreme Court‟s decision in the matter of DSCL
Sugar Ltd. (supra) has clearly laid down that bagasse is agricultural
waste of sugarcane and the waste and residue of agricultural
products, during the process of manufacture of goods cannot be
said to be result of any process. There is no manufacturing process
involved in Bagasse‟s production. "Bagasse" is not „goods‟ but
merely a waste or by-product, therefore Rule 6 of CENVAT Credit
Rules, 2004 is not applicable in the present case. "Bagasse" is
bound to come into existence during the crushing of the sugarcanes
and is an unavoidable agricultural waste. In the present case the
iron fines are bound to emerge during crushing of iron ore used for
manufacturer of final product. No extra procedure is required for
emergence of iron fines. Hence, the fines cannot be called as
manufactured product. The above decision of Hon‟ble Apex Court
shall squarely cover the facts and circumstances of present case.
The Board‟s Circular dated 25.04.2016 has no application on the
facts of the instant case for two reasons. Firstly, no Circular can
override the Rules as well as the law laid down by the Hon'ble
Supreme Court and the orders of this Tribunal, and secondly, the
said Circular was issued on 25.04.2016 i.e. on a later date, whereas
the period in dispute is March, 2015 to June, 2015.