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2025 (1) TMI 1437 - AT - Central ExciseCENVAT Credit - Ammonium Sulphate used in urea under Rule 6(3) of CENVAT Credit Rules was or was not required to discharge any duty during the impugned period during May 2015 to March 2016 - HELD THAT - It finds that issue is no more res-integra and has been recently decided based on various other case laws in HINDUSTAN CHEMICALS COMPANY VERSUS COMMISSIONER OF C.E. S.T. -SURAT-II 2024 (5) TMI 459 - CESTAT AHMEDABAD in which inter alia it was held by Division Bench of CESTAT Ahmedabad that the Ammonium Sulphate being a by-product arising out of manufacture of final product namely Potassium Cyanides and Sodium Cyanides will not be liable for payment of any amount in terms of Rule 6(3) of the Cenvat Credit Rules 2004. Conclusion - Ammonium Sulphate as a by-product from manufacturing Potassium Cyanides and Sodium Cyanides was not liable for payment under Rule 6(3) of the CENVAT Credit Rules. Appeal allowed.
**Summary of the Judgment:**In the case before the CESTAT Ahmedabad, the primary issue was whether Ammonium Sulphate used in the production of urea was liable for duty under Rule 6(3) of the CENVAT Credit Rules during the period from May 2015 to March 2016. The appellant argued that Ammonium Sulphate, used in urea (a fertilizer), was exempt from duty, although they mistakenly paid 1% duty. The Department contended that a 5% duty was applicable.The appellant relied on several precedents, including multiple decisions in "Hindustan Chemicals Company vs CCE & ST-Surat-II," which supported their position. The Authorized Representative for the Department did not strongly oppose these precedents.The Tribunal found that the issue was "no more res-integra," meaning it had been settled by previous case law. Specifically, a Division Bench of CESTAT Ahmedabad had previously ruled that Ammonium Sulphate, as a by-product from manufacturing Potassium Cyanides and Sodium Cyanides, was not liable for payment under Rule 6(3) of the CENVAT Credit Rules.The Tribunal concluded that the appeal was allowable, and the appellant was entitled to consequential relief. The appeal was thus allowed.
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