2024 (5) TMI 459 - AT - Central Excise

Reversal of CENVAT Credit - by-product, namely, Ammonium Sulphate arising during the course of manufacture of final product, namely, Potassium Cyanides, Sodium Cyanides - Rule 6(3) of Cenvat Credit Rules - HELD THAT - On the very same issue in the appellant s own case 2024 (4) TMI 323 - CESTAT AHMEDABAD , it has been decided that the Ammonium Sulphate being a by-product arising out of manufacture of final product namely, Potassium Cyanide and Sodium Cyanide, the same will not be liable for payment of an amount in terms of Rule 6(3) of Cenvat Credit Rules, 2004. In the present case also the impugned orders are not sustainable - The appeals are allowed.

Summary

Issues involved:
Whether the appellant is required to pay an amount u/s Rule 6(3) of Cenvat Credit Rules for the by-product Ammonium Sulphate arising during the manufacture of final products Potassium Cyanides and Sodium Cyanides.

Judgment Details:

Issue 1: Liability to pay under Rule 6(3) of Cenvat Credit Rules
The appellant argued that based on previous decisions in their own case, Ammonium Sulphate, as a by-product, is not liable for payment under Rule 6(3). The Tribunal noted that in previous orders, it was established that Ammonium Sulphate is indeed a by-product arising during the manufacture of final products. As such, the demand under Rule 6(3) was found to be not applicable. The impugned orders were set aside, and the appeals were allowed based on the settled issue in the appellant's own case.

Conclusion:
The Tribunal ruled in favor of the appellant, setting aside the impugned orders and allowing the appeals based on the established precedent regarding the non-applicability of Rule 6(3) to the by-product Ammonium Sulphate in the course of manufacturing final products Potassium Cyanides and Sodium Cyanides.