Bagasse - Excisability – Board Clarifies
EXCISABILITY of bagasse and similar waste products arising during the course of manufacture has been under dispute for a long period of time. There are a number of Tribunal's judgments that being waste, these are not excisable products. Generally, the courts have been taking a view that the waste or refuse or residue arising during the course of manufacture cannot be treated as excisable goods even if such waste fetches some price in the market.
In Budget 2008, the definition of “excisable goods” in clause (d) of Section 2 of the Central Excise Act, 1944 was amended by adding an explanation that for the purposes of this clause, “goods” include any article, material or substance which is capable of being bought and sold for a consideration and such goods shall be deemed to be marketable.
CBEC in No. 904/24/09-CX dated 28.10.2009 directed to keep the cases of the Excisability of bagasse for the period prior to the budgetary changes of 2008 in call book till department's appeal is decided in the case of Balrampur Chinni Mills Ltd . (Please see – 29. 10. 2009)
Now Board informs that the Department's appeal has been dismissed by the Supreme Court and the Board wants the cases before 2008 to be taken out and decided as per the Supreme Court's judgement. Board hastens to clarify that the judgement will not have effect after the budgetary changes of 2008 when the definition of the “excisable goods” was amended in the Central Excise Act.
CBEC Circular No. 941/02/2011-CX.,Dated: February 14, 2011.