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TMI Blog2006 (12) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... d final products by using Cenvat credit availed on the inputs with an intention to wrongly avail the Cenvat credit and evade payment of 8% amount at the time of clearance of such exempted final products as specified in the Cenvat Credit Rules, 2002. A demand of Rs.4,29,89,639/- was made under Rule 12 of the Cenvat Credit Rules, 2002 read with Section 11A(1) of the Central Excise Act, 1944. Interest in terms of Rule 12 of the Central Excise Rules, 2002 read with Section 11AB of the Central Excise Act, 1944 was demanded. Penalty under Rule 13(2) of the Cenvat Credit Rules, 2002 read with Section 11 AC of the Central Excise Act, 1944 was proposed, apart from penalty under Rule 27 of the Central Excise Rules, 2002. The Adjudicating authority co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h v. CCE, Order-in-Appeal No. 303/2006 dated 17-10- 2006 wherein it has been held that Provision of Rule 6 for an exempted product will be attracted only if it is a final product and not a by-product waste or refuse even if it attracts classification under Tariff and is regularly cleared and sold based on the CESTAT, Bangalore Final Order No. 1036/2006 [2006 (205) E.L.T. 896 (Tribunal)J in the case of M/s. JSW Steels Ltd. and Final Orders No. 1266 & 1267/2006 in the case of M/s. Kalyani Ferrous Industries Ltd. 5. The learned JDR urged the following points: (i) The appellant while manufacturing the final products 'Refined Sun Flower Oil, Refined Groundnut Oil, Refined Soya Oil by using Cenvat credit availed on inputs, they were also extrac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 of Cenvat Credit Rules. (iv) The case laws relied upon by the appellants have no relevance to the present case as the same pertain to the period prior to introduction of Rule 6(3)(b) of Cenvat Credit Rules, 2002. The Board has vide Circular No. 654/45/2002-CX dated 19-8-2002 clarified that Rule 6 of Cenvat Credit Rules is unambiguous and clear to the effect that when separate accounts are not maintained, 8% of the price is to be paid. 6. We have gone through the records of the case carefully. The appellant in the course of manufacture of 'Refined Oil', had extracted certain by products like Crude Oil, De-Oiled Cakes, residue of oils etc. which are exempted from duty. The case of the Revenue is that under Rule 6(3)(b), no separate accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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