Bagasse Is Not A Manufactured Item And Not Dutiable: CESTAT

The Allahabad bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) ruled that bagasse is not a manufactured item and thus not subject to excise duty. The tribunal held that the amount paid on bagasse under Rule 6(3) of the CENVAT Credit Rules, 2004 should be refunded to the appellant, Daurala Sugar Works. The bench noted that bagasse, a byproduct of sugarcane crushing, is agricultural waste and not a result of a manufacturing process, thus not dutiable under the Central Excise Tariff Act, 1985.