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2011 (4) TMI 796 - AT - Central ExciseNon maintenance of separate MODVAT account - required to pay 10% of the value of their final product in terms of provisions of Rule 6(3)(b) of CENVAT Credit Rules, 2004 - Waste/byproduct - Held that:- As per RALLIS INDIA LTD. Versus UNION OF INDIA [2008 (12) TMI 46 - HIGH COURT BOMBAY] it is held that where common inputs are used in the manufacture of dutiable and exempted product, liability to pay amount under erstwhile Rule 57CC of Central Excise Rules, 1944 arises only for product and not for waste/byproduct. As find from the impugned order that the exempted products are admittedly in the nature of byproduct/ waste/residue arising during the course of manufacture of dutiable final product, the ratio of above decision of Mumbai High Court would squarely apply to the same.In favour of assessee.
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