9911796707
TMI Blog2012 (7) TMI 474X X X X Extracts X X X X X X X X Extracts X X X X ..... iew that since bio-compost is an excisable product under Chapter 31 of the Central Excise Tariff with nil rate of duty, same would be an exempted goods as defined in Cenvat Credit Rules, 2004 and since common Cenvat credit availed inputs have been used for manufacture of dutiable final products (sugar and molasses) and exempted final- (product bio-compost) and since no separate account and inventory have been maintained in terms of the provisions of Rule 6 (2) of Cenvat Credit Rules, 2004, the appellant in accordance with the provisions of Rule 6(3) would be required to pay an amount equal to 5% of the sale value of bio-compost. It is on this basis that demand of Rs. 9,30,192/- & Rs.1,30,275/- for the period from Sept. 2007 to August 2009 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at in this regard, he relies upon the judgment of the Tribunal in the case of E.I.D. Parry (India) Ltd. vs. C.C.E., Trichy reported in 2004 (61) RLT 673 and of Hon ble Bombay High Court in the case of Rallis India Ltd. vs. Union of India reported in 2009 (233) ELT 301 (Bom.); and that in view of this, the impugned orders are not correct. 4. Shri Nagesh Pathak, learned Senior Departmental Representative reiterating the finding of the Commissioner (Appeals) emphasised that bio-compost is excisable item chargeable to nil rate of duty and hence it has to be treated as exempted final product under Rule 2(d) of Cenvat Credit Rules, 2004; that since the appellant have not maintained separate inventory for the common inputs or input service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of gelatin was further processed to manufacture exempted phosphoryl A and B would not attract Rule 57CC, because, if Rule 57CC was not applicable at the time of clearance of the waste mother liquor arising in the manufacture of dutiable gelatin, then the said rule cannot be applied merely because mother liquor was further processed to manufacture exempted final product, namely, phosphoryl A and B . In other words, liability to pay the presumptive amount under Rule 57CC would arise only if the waste mother liquor is held to be a final product. It is not even the case of the revenue that the waste mother liquor arising in the manufacture of gelatin is a final product. Therefore, in the facts of the present case, if Rule 57CC was not applicab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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