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2016 (8) TMI 495 - AT - Central ExciseWhether Cenvat credit is admissible on the input contained in by-product or whether Rule 6(3)(b) is applicable in respect of clearance of by-product under exemption - Held that:- the Spent Acid is generated unavoidably during the course of manufacture of Linear Alkly Benzene Sulphonic Acid (LABSA). The main product is LABSA and the Spent Acid generates unintentionally and unavoidably in the process therefore by nature itself the Spent Acid is a by-product. The issue has been settled by various judgments. Moreover as per para 3.7 of Chapter 5 of CBEC Manual of Supplementary Instruction, it is clear that Cenvat Credit is admissible on the input contained in by-product/waste refuse. As, the Spent Acid is undoubtedly a by-product therefore, by the virtue of above provision as well as the issue does not remain as res-integra, in the light of the judgments, the demand of 10% of the value of the exemption goods in terms of Rule 6(3)(b) is not sustainable. - Decided in favour of appellant
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