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2013 (1) TMI 583 - AT - Central ExciseWaiver of pre-deposit - Applicants are engaged in the manufacturing of ‘sponge iron’ - During process of manufacturing of ‘sponge iron’, flue gas is generated - For cooling down the said gas, the ‘Water Heat Recovery Boiler’ is installed – Assessee claimed it as a pollution control device - Rule 2(a)(A)(ii) of CENVAT Credit Rules, 2004 – Held that:- Primafacie, agree with the assessee that they are entitled to CENVAT credit on the ‘Water Heat Recovery Boiler”. Steam has been generated during the course of cooling down of flue gases - The steam, so generated is sold by the applicants without payment of duty - Notification No. 6/2002-C.E – Revenue demanding payment of an amount equal to 10%/5% of the value of the exempted goods - Rule 6(3)(i) of die CENVAT Credit Rules, 2004 – Held that:- Following the decision in case of HI-TECH CARBON (2003 (3) TMI 238 - CEGAT, NEW DELHI) that that the above gases are burnt out, which generate heat and in turn the same is used in the boiler to generate steam. No doubt, the steam has been generated by the applicants as a conscious act but it cannot be claimed by the Revenue that any part of the inputs has gone into the manufacture of steam Applicants have made out a case for 100% waiver of pre-deposit. In favour of assessee
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