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TMI Blog1990 (1) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... is is an appeal directed against the order of the Collector of Central Excise (Appeals) bearing No. GSM-1772/89AHD [File No. V-2(17) 31/AHD/89] dated 24-8-1989. 2. Brief facts for the purpose of disposal of the appeal can be stated as below: 3. The appellants are manufacturers of Dextrose Monohydrate. They bring certain duty paid inputs used in the manufacture of the aforesaid product under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resaid order. 4. Shri C.S. Khambhaolja, the learned consultant, on behalf of the appellants contended that Redugent (hydrol) is nothing but a by-product occurring in the process of manufacture of dextrose monohydrate. As per the provision of Rule 57D, MODVAT credit is not to be denied to them or varied on the ground that part of the inputs is contained in any waste, refuse or by-product arising ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be denied or varied notwithstanding the fact that an input may be utilised in the manufacture of the by-product. Their case is therefore squarely covered by Rule 57D. He also contended that the inputs are used for the manufacture of dextrose monohydrate and utilisation has taken place before centrifuging and further usage of inputs stops there. At the stage of centrifuging, the mother liquor come ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eable to nil rate, duty credit cannot be extended by virtue of Rule 57C. While the appellants urge for application of Rule 57D, the Department insists on the denial in terms of Rule 57C. 7. After perusing the technical literatures cited by the appellants learned consultant, we are satisfied that these literatures recognise hydrol - the mother liquor on hydrolisis of starch as a by-product. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led to the benefit of Rule 57D and credit cannot be varied or curtailed on account of the fact that some part of the inputs would have gone into this by-product, which is chargeable to nil rate of duty. Moreover, we observe that demand has been issued on the entire quantity of hydrol produced which is hardly sustainable. 8. In the result, we allow the appeal and set aside the orders of the autho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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