Excise Duty Not Payable On 'Bagasse' Which Emerges As A Waste Product During Sugar Crushing: CESTAT

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) ruled that excise duty is not payable on bagasse, a by-product that emerges during the sugar crushing process. The case involved a dispute regarding the classification of bagasse and whether it should be subject to excise duty. CESTAT clarified that since bagasse is not a product intended for sale but a waste product, it does not attract excise duty under the applicable laws. The ruling provided a clear interpretation of excise duty applicability, emphasizing that by-products that do not have a commercial purpose are not taxable under excise law.