2012 (10) TMI 5

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..... vindaran;   This stay petition is filed for the waiver of pre-deposit of an amount of Rs. 1,92,902/- confirmed as duty with equal amount of penalty.   2. After hearing both the sides for some time on the stay petition, I find that the above said demand has been confirmed by the adjudicating authority and upheld by the first appellate authority on the ground that appellant has used comm .....

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..... input services on which the credit is availed by them and since part of the services and phosphoric acid is indicated to have been consumed for the manufacture of exempted product also and appellant having not maintained separate accounts under the provisions of Rule 6 of Cenvat Credit Rules, 2004, he is liable to pay 10% of the value of the exempted by-product i.e. on the Bio-compost or Pres-mud .....

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..... ble to duty. As submitted by learned Counsel, emergence of waste or by-product during the course of manufacture, cannot lead to a stand that separate accounts are required to be maintained 10% has to be paid. In the case of Sterling Gelatin, mother liquor came into existence during the course of manufacture of Gelatin, which is inevitable by-product. Similarly, in this case also, Press-mud is a b .....

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