2009 (3) TMI 1013 - AT - Central Excise

Whether the byproduct emerging during the course of manufacture of final product, is required to reverse 10% of value of the exempted goods, in terms of Rule 6 (3) of CCR, 2004? - Held that - the issue is squarely covered by the decision in the case of NARMADA GELATINES LIMITED Versus COMMISSIONER OF C. EX., BHOPAL 2008 (11) TMI 75 - CESTAT NEW DELHI , where it was held that a waste arising out of principal process of manufacture does not burden the Assessee with levy u/r 6(3)(b) of CCR - appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT, Ahmedabad ruled in favor of the appellant regarding the issue of reversing 10% value of exempted goods for the byproduct. The decision was based on the reversal of a previous Tribunal's decision by the Bombay High Court and subsequent Tribunal decisions. The impugned order was set aside, and the appeal was allowed with consequential relief to the appellants.