CHENGALRAYAN CO-OPERATIVE SUGAR Vs. CCE

JUDGEMENT

(1.) THIS is an application for waiver of pre -deposit and stay of recovery of Rs. 1,56,180/ - being 8% of the sale price of the Enriched Press Mud and Vermi Compost cleared by M/s. Chengalrayan Co -operative Sugar Mills Ltd., during 2002 -03 and 2003 -04, demanded by the original authority and affirmed by the Commissioner (Appeals) in the impugned order.

(2.) AFTER hearing both sides on the application, after dispensing with the requirement of pre -deposit, the appeal against the impugned order itself is taken up for disposal.

(3.) THE facts of the case are that the appellants manufacture Sugar and Molasses from sugarcane, when they receive 'Bagassee' an exempted product and 'Press Mud' a non -excisable item. The appellants prepare 'Enriched Press Mud' and 'Vermi Compost' using the press mud. Demand has been made in terms of Rule 6(3)(b) of the Cenvat Credit Rules, 2002, (CCR for short) on the ground that, the enriched press mud and vermin compost are exempted final products emerging in the process of manufacture of dutiable final products sugar and molasses, all of which are manufactured using common inputs.