2014 (7) TMI 270 - AT - Central Excise

Cenvat Credit - emergence of exempted by-product - Whether 8% of the amount is required to be discharged, before removal of by products/subsidiary products when such products are exempted from whole of duty - common inputs used in dutiable and exempted goods - Held that - liability to pay the said amount would not arise in respect of exempted by-product. - Revenue in their memo of appeal has again contested the matter on legal provisions but has not referred to the fact as to why Bombay High Court decision would not be applicable. I find that the Bombay High Court decision 2008 (12) TMI 46 - HIGH COURT BOMBAY clearly covered disputed issue and has been rightly followed by Commissioner (Appeals) - Decided against Revenue.

Summary

The Appellate Tribunal CESTAT NEW DELHI heard an appeal by the revenue against the order passed by the Commissioner (Appeals) regarding the duty on Barley Malt Roots. The revenue's appeal was rejected as the Commissioner (Appeals) correctly applied a Bombay High Court decision stating no liability for payment on exempted by-products.