UNION OF INDIA Vs. DSCL SUGAR LTD.

JUDGEMENT

(1.) In Bagasse Matters: Civil Appeal No. 3947/2013; Civil Appeal No. 3948/2013; Civil Appeal No. 1237/2014; Civil Appeal No. 3949/2013; Civil Appeal No. 6814/2014; Civil Appeal No. 10998/2013; Civil Appeal No. 4488/2014; Civil Appeal No. 6813/2014; SLP (C) No. 23659/2013; SLP (C) No. 6687/2014; SLP (C) No. 22817/2013; SLP (C) No. 23028-30/2013; SLP (C) No. 3341/2014; SLP (C) No. 22378-22379/2013; SLP (C) No. 3511/2015; SLP (C) No. 17236/2013; SLP (C) No. 22380/2013; SLP (C) No. 11958/2014 : Leave granted in all the special leave petitions. All these appeals are filed by the Revenue and the question which arises for consideration is common, namely, whether Bagasse which emerges as residue/waste of sugarcane is subjected to excise duty or not. The excitability of the aforesaid residue depends on the answer to the question as to whether it is manufactured product and falls within the definition of manufacture' as contained in Section 2(f) of the Central Excise Act. The facts in brief are as under:

(2.) Respondents herein are manufacturer of sugarcane and molasses falling under Chapter sub-heading 1701 11 90 and 1703 10 00 respectively, of the First Schedule to the Central Excise Tariff Act, 1985. In the process of manufacture of sugar, sugarcane is crushed, its juice is extracted and Bagasse emerges as residue/waste of sugarcane.

(3.) It is not in dispute that Bagasse is otherwise classified under Chapter sub-heading No. 2303 20 00 of the First Schedule to the Central Excise Tariff Act, 1985 and attracts nil rate of duty.