2015 (10) TMI 1149

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..... Alloys and Non-alloy Cast and Rolls. This slag arises unavoidably during the course of manufacture. Therefore slag is nothing but waste - Above para of instruction manual provides that Cenvat Credit is admissible even in respect of input contained in any waste, refuse or by-product. Therefore demand under Rule 6(3)(i) of Cenvat Credit Rules is not maintainable. This issue was time and again consi .....

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..... 52/2011 dtd. 30/11/2011 passed by the Commissioner of Central Excise (Appeals-III), Pune, wherein the Commissioner (Appeals) has upheld the order-in-original No. 05/CEX/PIX/2011 dated 17/8/2011 and rejected appeal of the appellant. The fact of the case is that the appellant is engaged in the manufacture of excisable goods viz., Alloys and Non-alloy Cast and Rolls falling under Chapter 72 of the Fi .....

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..... ali Hirawat, ld. Counsel for the appellant submits that slag is arising unavoidably during the course of manufacture of their final product i.e. Alloys and Non-alloys Cast and Rolls. The demand of 10% provided under 6(3)(i) of Cenvat Credit Rules, 2004 is not applicable in case of removal of waste, scrap, by-product, refuse in terms of Para 3.7 of Chapter 5 of CBEC's Excise Manual of Supplemen .....

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..... Rules 6(3)(i) of Cenvat Credit Rules, 2004. The fact of the case is not under dispute that goods is slag arising out of the manufacturing of final product i.e. Alloys and Non-alloy Cast and Rolls. This slag arises unavoidably during the course of manufacture. Therefore slag is nothing but waste. In terms of Para 3.7 of Chapter 5 of CBEC's Excise Manual of Supplementary Instructions 2005, whic .....

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..... in various judgment and finally Hon'ble Supreme Court in the case of Hindustan Zinc Ltd. (supra) held that demand under Rule 6(3)(i) is not sustainable in respect of waste, by product, refuse cleared without payment of duty. In view of the above settled legal position, I am of the considered view that demand of 10% of the value of Slag cleared by the appellant under NIL rate of duty is not sus .....

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