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2016 (8) TMI 543 - AT - Central ExciseCenvat credit - inputs and capital goods used in or in relation to manufacture of the Silico Manganese slag and Ferro Chrome slag come into existence as a residue/ waste product - slag emerged during the course of manufacture of the main final product are exempted from payment of Central Excise duty - Held that:- since, the appellant had no intention to manufacture slag, the same, should not be considered as excisable goods. Since the slag seized to the excisable goods, the question of dutibility or exemption does not arise. Therefore, the embargo created in Rule 6(3) of the Cenvat Credit Rules, 2004 for payment of amount equal to 5%, 6% or 10% of the value of exempted goods has no application in the circumstances of the present case. It is found that the CBEC in Chapter 5 at paragraph 3.7 in the Supplementary Instructions 2005 have clarified that Cenvat credit is admissible in respect of the amount of inputs contained in any of the waste, residue or by-product. Therefore, confirmation of amount under Rule 6(3) of the Rules by the authorities below is not in conformity with the cenvat statute. - Decided in favour of appellant
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