TMI Blog2017 (3) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 - Mr. Devender Singh, Member (Technical) None for the Appellant Shri Atul Handa, A.R. for the Respondent ORDER Per Devender Singh The appellants are in appeal against the Order-in-Appeal No. 393/CE/Jal/2007 dated 31.12.2007 passed by the Commissioner of Central Excise (Appeals), Jallandhar (Hq. at Chandigarh). 2. Brief facts of the case are that the appellants are engaged in the spinning of woollen worsted yarn and are availing cenvat credit w.e.f. 01.04.2000 in respect of inputs used in manufacture of woollen yarn. During the process of manufacture of woollen yarn, wool waste arises and the appellants are clearing the same at 'Nil' rate of duty. For the period 01.04.2000 to 31.12.2000 after reversin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its, waste and scrap arising in the manufacture of iron products and hydrogen arising as a by-product in the manufacture of oxygen by the process of electrolysis of water. We find it difficult to accept the above finding. What Rule 57D provides is that where modvated input is used in the manufacture of dutiable final product and waste, refuse or by-product arise in that process, then, even if the modvated inputs are contained in the waste, refuse or by-product and whether or not excise duty is payable on such waste, refuse or by-product, the manufacturer would not be denied full credit of duty paid on inputs used in the manufacture of dutiable final product. Rule 57CC applies only if the modvated inputs are used in the manufacture of both d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms used are 'inputs', 'final products', 'by-product', waste products , etc. We are of the opinion that these terms have been used taking into account commercial reality in trade. In that context when we scan through Rule 57CC, reference to final product being manufactured with the same common inputs becomes understandable. This Rule did not talk about emergence of final product and a by-product and still said that Rule 57CC will apply. The appellant seeks to apply Rule 57CC when Rule 57D does not talk about application of Rule 57CC to final product and by-product when the by-product emerged as a technological necessity. Accepting the argument of the appellant would amount to equating by-product and final product ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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