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2019 (4) TMI 2119 - AT - Central ExciseRecovery of CENVAT credit - sale of electricity which was generated from the waste heat produced during the manufacture of sponge iron - Rule 6(3) of the Cenvat Credit Rules, 2004 - time limitation - HELD THAT:- The findings of the Tribunal in the case of Tirupati Starch & Chemicals Ltd. Vs. CCE & ST Ujjain [2018 (9) TMI 1481 - CESTAT NEW DELHI], agreed upon - It is found that though number of amendments have taken place from time to time to define “exempted goods” under the Cenvat Credit Rules, 2004 to include non-excisable products/ exempted products in the definition but in Rule 6(2) of the Cenvat Credit Rules, 2004, the expression “final products” have remained unchanged during these years. Thus it is very clear that the legislation has intended to include only those inputs/ services which are used during the manufacture of “final products” and not unintended “by-products” which are a necessity of the manufacturing products. It cannot be accepted that the heat entrapped in flue gases which emerge during the process as waste or by-product can be regarded as a “final product” which is beneficially used by the appellant for manufacture of electricity. The ratio of the Hon’ble Supreme Court judgment in the case of UNION OF INDIA & OTHERS VERSUS M/S. HINDUSTAN ZINC LTD. [2014 (5) TMI 253 - SUPREME COURT] is squarely applicable to the issue in hand, where it was held that the requirements of 57CC were fully met in the way in which the Respondent was maintaining records and inventory and the mischief of recovery of 8% under Rule 57 CC on exempted sulphuric acid is not attracted. Time Limitation - HELD THAT:- Even on limitation as the issue is squarely based on interpretation of law, it is held that the charge of willful suppression does not sustain and extended period of limitation is not applicable. The appeal is allowed.
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