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2012 (10) TMI 230 - CESTAT, NEW DELHIIron ore fines - clearance without payment of duty in terms of exemption Notification No.4/06 - Held that:- As decided in RALLIS INDIA LTD. Versus UNION OF INDIA (2008 (12) TMI 46 - HIGH COURT BOMBAY) that liability to pay amount under erstwhile rule 57CC and Rule 6 of Cenvat Credit Rules, 2004, arises only for the final products and not for the waste emerging during the course of the final product. The appellant have set up their unit for production of sponge iron using iron ore as a raw material. In the process of handling, sorting, grading, screening of the raw material and to obtain iron ore of desired size to be used in the kiln, iron are fines (i.e., iron ore of smaller size not usable in the kiln) came into existence, as inevitable product which appellant are selling as waste. The input service (GTA) is used for procurement of raw material and of during processing of such raw material for the purpose of production desired product, i.e., sponge iron, some inevitable waste came into existence, it cannot be said that input service is used in the production of such inevitable by product/waste. As iron ore fines emerge as waste product during the manufacture of final product, it stands rightly held by Commissioner(Appeals) that they do not attract the provisions of Rule 6(3)(b) - in favour of assessee.
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