The department treated bagasse as an exempted good and alleged non-compliance with Rule 6 due to the absence of separate records, demanding payment under Rule 6(3)
The Chennai Bench of Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) ruled that ‘Bagasse’ is not a manufactured product and set aside the demand under Rule 6 of the CENVAT Credit Rules ( CCR ), 2004. Sakthi Sugars Ltd..appellant-assessee, manufactured sugar and molasses, generating bagasse as a by-product. The bagasse was used…
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