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2015 (4) TMI 1035 - AT - Central ExciseBenefit of CENVAT Credit - exemption vide Notification No. 3/2005 dated 24.02.2005 - Held that:- What 57D provides is that where MODVAT input is used in the manufacture of dutiable final product and waste, refuse or by-product arise in the process, then, even if the MODVAT 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 products. Rule 57CC applies only if the MODVAT inputs are used in manufacture of both dutiable final products and exempted final products and the manufacturer has not maintained separate accounts so as to ascertain the quantum of inputs used in the manufacture of the final products. Therefore the floor sweepings/waste and scrap/hydrogen arising in the manufacture of biscuits/iron-products/oxygen, respectively will be governed by Rule 57CC if they are exempted final products and would be governed by Rule 57D if they are merely waste, refuse or by-product arising in the manufacture of dutiable final products and accordingly the Hon ble Bombay High Court allowed the writ petition of Rallis India Limited (2006 (12) TMI 162 - CESTAT, MUMBAI) holding that no duty whatsoever is payable in the case of by-products, waste and scrap. - in the present case also sawdust generated is waste and not a final product of the appellant. Accordingly I hold that no duty is payable under the provisions of Rule 6(3)(b) of the CENVAT Credit Rules, 2004 or in the earlier provisions of rule 57CC of the Central Excise Rules, 1944. Accordingly, the appeal is allowed. The appellant will be entitled to consequential benefit if any. - Decided in favour of assessee.
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