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TMI Blog2015 (10) TMI 338X X X X Extracts X X X X X X X X Extracts X X X X ..... s emerged as by-product, which is used for generation of electricity. The electricity was partly used in the plant and partly sold. 2. According to the Revenue, electricity is exempted and therefore they are liable to pay the amount 8% / 10% on value of the electricity under Rule 6 of the Cenvat Credit Rules. The Learned Advocate for the appellant, relied upon the following decisions: 1. Hitech Carbon Vs CCE, Allahabad - 2003(161)ELY 407 (Tri.Del) 2. Rallis India Ltd Vs UOI - 2009(233)ELT 301 (Bom) 3. CCE, Vadodara 1 Vs Sterling Gelatin 0-2011(270) ELT.200(Guj) 4. UOI & Others Vs Hindustan Zinc Ltd - Civil Appeal No 8621 of 2010 (SC) 5. Ballarpur Industries Ltd Vs CCE Nagpur =-2006(205)ELT 483(Tri.Mum) 3. The learned Authorised Repre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to the manufacture of the final product, whether or not such waste, refuse or by-product is exempted from whole of the duty of excise leviable thereon or chargeable to nil rate of duty or is not specified as a final product under Rule 57A". It is thus apparent from the provisions of Rule 57D(1) that the credit shall not be denied on the ground that part of the inputs is contained in a by-product. It is also not in dispute that by-product in the present matter namely, 'off gases' are burnt out which generate heat which in turn is used in the boiler to generate steam. No doubt the steam has been generated by the appellants as a conscious act but it cannot be claimed by the Revenue that any part of the inputs, that is CBFS or any other inpu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en in Chamber's Dictionary and Webster's Compressed Dictionary has held that the lean gas obtained by processing natural gas to remove propane and butane is nothing but a by-product and the provisions of Rule 57CC were not applicable to lean gas and the benefit of Rule 57D was extended. Following the ratio of these decisions, we are also of the view that provisions of Rule 57CC would not be applicable to the steam in the present matter. Thus we set aside the impugned Order and allow the Appeal." It is noticed that Hon'ble High Court of Bombay and Hon'ble High Court of Gujarat had also approved the views of the Tribunal. 4. In view of the above discussions, we set aside the impugned order, The appeal filed by the applicant i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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