2017 (12) TMI 146

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Central Excise
Shri Raju, Member (Technical) Shri V.B. Gaikwad, Advocate for the appellant Shri S.J. Sahu, AC (AR) for the respondent Per: Raju ORDER These appeals have been filed by Athani Sugars Ltd. and eight others. 2. Ld. Counsel for the appellants argued that reversal of cenvat credit has been sought invoking Rule 6 of the Cenvat Credit Rules in respect of Pressmud and Bagasse c .....

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..... e gone through the rival submissions. I find that identical issue has been decided by the order of Tribunal in Shivratna Udyog Ltd. & Ors. Dated 04.08.2017. In para 4 of the said order, following has been observed:- 4. I have carefully considered the submissions made by both sides. The fact of the case is that the appellants goods in dispute are bagasse, press-mud, boiler ash and compost which a .....

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..... the case of Union of India Vs. Hindustan Zinc Ltd. (supra) wherein it was held that the Sulfuric Acid which is generated as a by product recovery of 8% under Rule 6 of Cenvat Credit Rules 2004 is not correct. In view of the above judgments the issue whether Rule 6(3) is applicable in case of removal of non-dutiable waste or by product is settled in favour of the assessee. As regard the submissions .....

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..... t payment of amount under Rule 6(3) are either by product or waste. In case of by product or waste the decision of Jurisdictional High Court of Bombay in the case of Rallies India Ltd.(supra) settled the issue that case of by product or waste cenvat credit cannot be denied. As provided in para 3.7 of Chapter 5 of CBEC Circular which reads as under: 3.7 CENVAT credit is also admissible in respect .....

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..... is still in force the Cenvat credit either by way of Rule 6(3) or otherwise cannot be denied. As per my above discussion, I am of the considered view that in case of removal of waste or by-product Rule 6(3) has no application. Accordingly, the impugned orders are set aside. The appeals are allowed. 5. Relying on the said order, appeals are allowed. (Pronounced in Court on 27/10/17)
Case la .....

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