CCE Vs. GADHINGLAJ TALUKA SSK LTD.

JUDGEMENT

(1.) IN this case M/s. Gadhinglaj Taluka SSK Ltd., Kohlapur (Respondent) are the manufacturers of sugar, during the manufacture of which a by -product called 'Spent Wash' is generated. The said spent wash is being used by the respondents for manufacture of 'Compost Fertilizer' which the respondents sell in the market.

(2.) IN this case the appellants namely, Revenue, have filed the present appeal against the Order of the Commissioner (Appeals) who has passed a speaking order concluding that it is incorrect to hold that molasses is used in the manufacture of compost fertilizer and that there could not be any case of recovery of any amount under Rule 57CC. Learned Jt. C.D.R. reiterates the grounds of appeal in which the Tribunal has passed the decision ascertaining the payment of 8% amount on the value of exempted Ethyl Alcohol. The case laws cited are as under:

(3.) LEARNED Advocate has referred to the two Member Bench decision in the case of E.I.D. Parry (India) Ltd. v. CCE, Trichy reported at 2004 (176) ELT 734 (Tri. -Chennai). Here, the Tribunal held that the chemicals were used in the manufacture of sugar which is the final product. Pressmud, a waste product was obtained during the course of manufacture of final product. From press mud the appellant is also manufacturing Bio -compost which is also an exempted product. It was therefore held that chemicals are not used as inputs in the manufacture of Bio -compost and hence the provisions of Rule 57CC are not applicable.