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TMI Blog2007 (4) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... rred in this reference : "(i) Whether in the facts and circumstances of the case, the Tribunal was correct in law in holding that Solvent 75 is not a waste or by product, thus affecting the eligibility of the applicants to the benefit of Rule 57M(1)? (ii) Whether the provisions of Section 11A of CESA, 1944 are to be read into Rule 57P of the Central Excise Rules, 1944?" 3. The First Question : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 57K of the Central Excise Rules, money credit is available of duty paid on Ethyl Alcohol (i.e. raw material) towards duty payable on various final products such as Butanol Butyl Acetate, etc. The Department issued a show cause notice on 16-6-89 proposing reversal of money credit on the quantity of Ethyl Alcohol relatable to Solvent 75 and Paraldyhe on the ground that these two products are no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... midway during the process of manufacture of the main product. It would remain a "by-product" even if the product so obtained midway is required to undergo some small amount of further treatment or processing to bring it to a finished or marketable form. However, where what so obtained midway is required to undergo considerable processing before it can be brought to a finished or marketable form, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with disallowing of credit on inputs, if the credit has been taken wrongly, and provides for consequent adjustment of the wrongly taken credit. Section 11A of the Central Excise Act, 1944 deals with recovery of duties :- (1) not levied; or (2) not paid; or (3) what levied; or (4) short paid; or (5) erroneously refunded. 9. Thus, essentially in terms of Section11A, which contains the time lim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re unable to agree. The cash recovery is of credit on inputs wrongly taken and is not recovery in respect of (1) non-levied or (2) short levied or (3) non paid or (4) short paid or (5) erroneously refunded duty-excise duty. 12. In the circumstances, we are unable to hold as a proposition of law that the limitation under Section 11A will have to read into Rule 57P. The question No. 2 is answered a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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