Skip to main content
India's Trade & Customs Knowledge Base
Live on PostgreSQL About• Contact• Sign in Subscribe
EK EXIMKEY
Export · Import · Customs · DGFT Intelligence
Daily Updates Membership
Circular

Cir. No.543/39/2000-CX, dt. 01/09/2000

Document type
Circular
Reference no.
G
Dated
Category
Excise Circulars Issued In The Year-2000

Excisability of Press mud arising during the manufacture of sugar - adjudication of cases

Circular No. 543/39/2000-CX, Dated : 01/09/2000

Excisability of Press mud arising during the manufacture of sugar - adjudication of cases

A number of assessees are engaged in the manufacturer of V.P. Sugar and during the manufacture of sugar the press mud comes out as waste. The department has been contending that the party is required to pay an amount equal to 8% of the value of the press mud as per the provisions of Rule 57CC of Central Excise Rule 1944. On the other hand the tribunal in their various judgements has held that the assessees in question are the manufacturer of V.P. Sugar and press mud is only a residual waste and not a by product and that press mud is not a marketable commodity, the party is not required to pay an amount equal to 8% of the value of press mud under Rule 57CC of the said rules.

Considering the grounds adduced by the various jurisdictional Commissioners of Central Excise for agitating the matter before the Apex Court and the Tribunal"s orders holding to the contrary, it appeared that the issue is debatable. According the department preferred a couple of Civil Appeals on the said matter and those have also been admitted by the Apex Court.

However, to avoid multiplicity of litigation it would be advisable to wait for the final verdict of the Apex Court rather than to pass orders and generate more and more litigations. You are, therefore, advised to inform all the officers under your charge to issue protective demands but keep the matters in Call Book pending final decision of the Supreme Court about the excisability of the press mud.

Receipt of the circular may kindly be acknowledged.

Sd/-
K.K.Jha
Director (Review)

(Please refer

Stay updated

New notifications, circulars and trade notices as they are published.

Subscribe via RSS

Related Content

In This Category

48,405
HS Codes covered
Section to 8-digit product level
37,765
Regulatory documents
DGFT, Customs, Excise, RBI & GST
152,183
Import duty lines
Tariff lines with effective rates
20,499
SION norms
Standard input–output norms