Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (4) TMI 272 - AT - Central ExciseCENVAT credit - Rule 6(3) of CCR - demand on the ground that the appellant did not pay the amount of 5% on clearance of Char/Dolachar from the factory - During the course of manufacture of Sponge iron, Char/Dolachar emerges as by-product/waste which are removed from the factory without discharging any Central Excise duty liability - Held that: - The embargo created in Rule 6 has the application, only when the manufacturer manufactures both dutiable as well as exempted final product. Char/Dolachar involuntarily generated during the course of manufacture of sponge iron, cannot be considered as exempted goods as defined in Rule 2(d) of the CCR, 2004 inasmuch as the said goods are neither exempted by issuance of any notification by the Central Government nor attract nil rate of duty in the Tariff Act. Since, Char/Dolachar are seized to be exempted goods, the stipulation contained in Rule 6 shall have no application for payment of amount on clearance of said goods from the factory - demand not sustainable - appeal allowed - decided in favor of appellant.
|