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TMI Blog2022 (7) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... a by-product, no demand under Rule 6 shall sustain. It is found that the same facts are involved in the present case - appeal allowed - decided in favor of appellant. - Excise Appeal No. 10097 of 2022 - A/10396/2022 - Dated:- 26-4-2022 - MR. RAMESH NAIR, MEMBER (JUDICIAL) Shri Rahul Gajera, Advocate for the Appellant Shri. G. Kirupanandan, Superintendent (AR) for the Respondent ORDER The issue involved in the present case is that whether the appellant is required to pay an amount on clearance of Silica Sand and Ball Clay Which is generated as by product during the course of mining of Lignite and clearance thereon. 2. Shri Rahul Gajera, learned Counsel appearing on behalf of the appellant at the outset submits t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... related ancillary activities requires to be carried out under turnkey mining contract iv Overburden (OB): Lignite being sedimentary in nature occurs either in a single layer or in multiple layers at various depths Opencast mining method to win this lignite involves excavation of the entire overlying matenals up-to the depth of lignite formation in the target area. The materials lying from the surface level to the first layer of lignite in the target area is termed ar Overburden (OB) For the purpose of the agreement, the OB materials chiefly constitute top soil, silica sand, sandstone, clay, shale etc B. Method of Mining 1. Lignite has been mined by opencast mining method, using conventional mining machinery ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all percentage of these by products. This also show that the Silica Sand and Ball Clay are by product. As per para 3.7 of Chapter 5 of CBEC's manual which is reproduced below:-. 3.7 CENVIAT Credit is also admissible in respect of the amount of inputs contained in any the waste, refuse or by-product Similarly, Cenvat is not to be denied if the inputs are used in any intermediate of the final product even if such intermediate is exempt from payment of duty The basic idea is that Cenvat credit is admissible so long as the inputs are used in or in relation to the manufacture of final products, and whether directly or indirectly. From the above para, it is clear that any input/linput services contained in any by product/waste/r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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