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TMI Blog2024 (11) TMI 1040X X X X Extracts X X X X X X X X Extracts X X X X ..... of the final product and not in manufacture of by product. Therefore, the exemption Notification No.01/2011which carries the condition of non availment of Cenvat Credit on input cannot be denied. This issue is no longer res-integra, in the appellant s own case, HINDUSTAN CHEMICALS COMPANY VERSUS COMMISSIONER OF C.E. S.T. -SURAT-II [ 2024 (5) TMI 459 - CESTAT AHMEDABAD] it was held that ' since the issue has been settled that Ammonium Sulphate being a by-product arising in the course of manufacture of final product, the demand under Rule 6(3) is not applicable. Accordingly, In the present case also being a similar issue, demand is not sustainable.' In view of the above decision in the appellant s own case, it has been held that the reversal under Rule 6(3) of Cenvat Credit Rules in respect of Ammonium sulphate being by product is not required to be made. This has been held with a view that Cenvat Credit on the input cannot be said to have been availed when any by product is cleared. Therefore, in view of the above settled position, the demand of excise duty on the Ammonium Sulphate which was made on the basis that the Cenvat Credit was availed on the inputs is not sustainabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of the judgments are reproduced below:- Hindustan Chemicals Company Vs. Comm. C.E. S.T. Surat II 2024 (5) TMI 459 - CESTAT Ahmedabad The issue involved in the present case is that whether the appellant is required to pay an amount in terms of Rule 6(3) of Cenvat Credit Rules, in respect of by-product, namely, Ammonium Sulphate arising during the course of manufacture of final product, namely, Potassium Cyanides, Sodium Cyanides. 2. Shri Hardik Modh, Learned Proxy Counsel for Advocate on record Shri Dhaval Shah submits that this matter has been argued by Shri Dhaval Shah and today, the matter is listed only for submitting the judgment in the appellant s own case on the same issue. He has submitted following two decisions, in the appellant s own case: 1. The Final Order No. A/ 12581/ 2021 dated 02/12/2021 2. The Final Order No. 10761/ 2024 dated 03/04/2024 He submits that present appeals may be disposed of in view of the above decisions. 3. Shri P. Ganesan, Superintendent (AR) appearing on behalf of the Revenue reiterates the findings of the impugned order. 4. We have carefully considered the submissions made by both sides and perused the records. We find that on the very same iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able. 5. Hence, the same is set-aside. The appeals are allowed. Hindustan Chemicals Company Vs. Comm. C.E. S.T.Surat II2024 (4) TMI 323 - CESTAT Ahmedabad This appeal has been filed by the Hindustan Chemical Company against demand of reversal of Cenvat Credit availed by them. 2. Learned Counsel pointed out that they are basically engaged in production and clearance of Potassium Cyanide and Sodium Cyanide, falling under Chapter 28 of the First Schedule to the Central Excise Tariff Act, 1995. They had opted for CENVAT CREDIT SCHEME. He pointed out that the production of Potassium Cyanide and Sodium Cyanide, they are first required to produce Hydrocyanic Acid Gas, by reacting Ammonia Methane and Air, in the present of Platinum-Rhodium Catalyst, at a Temperature of around 1100 C. Hydrocyanic Acid Gas, is then converted into Potassium Cyanide and Sodium Cyanide by neutralizing the same, with Potassium Hydroxide or Sodium Hydroxide. During production of Hydrocyanic Acid Gas, some excess Ammonia is left over in the Reaction System, which is required to be removed from the Reaction System, otherwise Hydrocyanic Acid Gas can polymerise into unwarranted product and Potassium Cyanide and Sodi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... technology created in the unit is not for production of Ammonium Sulphate but it is for production of Potassium Cyanide and Sodium Cyanide and therefore Ammonium Sulphate is merely unwarranted by-product, generated due to technology and environment constrains as the left over in the reaction vessel cannot be released in atmosphere. He relied on the decision of Tribunal in their own case vide order No. A/12581/2021 dated 02.12.2021 and order No. A/11905/2016 dated 26.12.2016. He pointed out that in both these decisions, it has been clearly stated that Aluminium Sulphate is a by- product and therefore examined for the provision of Rule 6 of the (3) of the Cenvat Credit Rules, in terms of the decision of Hon ble High Court of Gujarat in the case of C.C.E Customs, Vadodara-I Vs. Sterling Gelatin-2011 (270) E.L.T. 200 (Guj.). Learned Counsel also submitted detailed process of manufacture contained in their letter dated 18.11.2023. 3. Learned AR relies on the impugned order. 4. We find that the issue re integra, the matter has been decided by this Tribunal in appellant s own case vide Final Order No. A/12581/2021 dated 21.02.2021 and order No A/11905/2016 dated 26.12.2016. In order dated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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