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TMI Blog2007 (11) TMI 623X X X X Extracts X X X X X X X X Extracts X X X X ..... vs. CCE, Indore [2004 (1) TMI 244 - CESTAT, NEW DELHI] applicable in the present case, where it was held that rule 57CC of the said erstwhile Rules is not applicable in respect of clearance under chapter X procedure, which is neither exempted goods nor chargeable to Nil rate of duty - demand set aside. CENVAT credit - whether cenvat credit reversible in respect of common inputs used in generation of steam, which was further used for generation of electricity sold outside the factory? - Held that: - this issue is required to be examined by the Commissioner (Appeals) afresh - matter on remand. Appeal allowed in part and part matter on remand. X X X X Extracts X X X X X X X X Extracts X X X X ..... ial position as they would not be liable to pay at 8% of amount. But those who are clearing exempted goods without observing the procedure under Rule 2001 liable to pay amount of 8% under Rule 6 of Cenvat Credit Rules. He relied upon the decision of the Hon'ble Supreme Court in the case of CCE, Vadodara vs. Dhiren Chemical Industries reported in 2001 (47) RLT 881 (SC)=2002 (139) ELT 3 (SC). 3. After hearing the learned authorized representative (DR) and on perusal of the record, I find that the Commissioner (Appeals) set-aside the demand following the decision of the Tribunal in the case of Aureola Chemicals Ltd., vs. CCE, Indore reported in 2004 (62) RLT 967 (CESTAT-Del.)=2004 (175) ELT 148 (Tri.Del). In the said case, the assessee cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is engaged in the manufacture of final product which is chargeable to duty as well as which is exempted from the whole of excise or chargeable to Nil rate of duty and manufacturer is taking credit on the duty paid on inputs used in both type of products is to pay an amount equal to 8% of the price cleared at Nil rate of duty. 10. As discussed above, the goods cleared under Chapter X Procedure are neither exempted goods nor said to be chargeable to Nil rate of duty as the recipient of the goods are duty bound to use these goods for specified purpose and, if, the goods are not used for specified purpose, goods are liable to duty. In this situation, the goods cleared under Chapter X Procedure cannot be said to be exempted from whole of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urther submits that the larger bench of the Tribunal in the case of Rallies India Limited vs. CCE, Salem reported in 2007 (78) RLT 117 (CESTAT-LB)=2007 (208) ELT 25 (Tri. LB) overruled the decision of the Tribunal in the case of Rama Industries Limited (supra). 6. After hearing the learned authorized representative (DR) and on perusal of the record I agree with the submission of the learned authorized representative (DR). it is seen that the Commissioner (Appeals) observed that steam is a bye-product and reversal of cenvat credit is not warranted in this case. In any event, the decision of the Rama Industries Limited relied upon by the Commissioner (Appeals) is overruled by the larger bench of the Tribunal. Therefore, this issue is require ..... X X X X Extracts X X X X X X X X Extracts X X X X
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