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2022 (6) TMI 555 - AT - Central ExciseCENVAT Credit - common inputs used in taxable as well as exempt goods - non-maintenance of separate records - pollution control equipment - production of steam - exempt goods - requirement to reverse 10% of the Cenvat credit availed - Rule 6 (3) (b) and Rule 6 (3) (i) of CCR - HELD THAT:- Hon’ble Apex court in the case of COMMISSIONER OF CENTRAL EXCISE, JAIPUR VERSUS M/S RAJASTHAN SPINNING & WEAVING MILLS LTD. [2010 (7) TMI 12 - SUPREME COURT] has held that It is not the case of the Revenue that both these items are not required to be used in the fabrication of chimney, which is an integral part of the diesel generating set, particularly when the Pollution Control laws make it mandatory that all plants which emit effluents should be so equipped with apparatus which can reduce or get rid of the effluent gases. Therefore, any equipment used for the said purpose has to be treated as an accessory in terms of Serial No. 5 of the goods described in column (2) of the Table below Rule 57Q. Whether the appellants are required to reverse 10% of the credit availed in view of the fact that the steam generated is exempt? - HELD THAT:- In the case of M/S BALRAMPUR CHINI MILLS LTD. THROUGH ITS GENERAL MANAGER VERSUS UNION OF INDIA, MINISTRY OF FINANCE DEPARTMENT OF REVENUE [2019 (5) TMI 972 - ALLAHABAD HIGH COURT], it was enunciated that Bagasse/ Press mud produced during the course of manufacture of sugar cannot be treated as exempted products and the provision of Rule 6 of Central Excise Rule, 2004 cannot be applied - In the instant case steam is generated in the course of manufacture and it cannot be said that the appellants have manufactured steam which is an exempt product. Hon’ble Gujarat High Court in the case of COMMISSIONER OF C. EX. & CUSTOMS, VADODARA-I VERSUS STERLING GELATIN [2010 (9) TMI 857 - GUJARAT HIGH COURT] held that a bye product emerging in the course of manufacture cannot be treated as a manufactured product for the purposes of Rule 6 of Cenvat credit Rules. Nothing survives in the impugned order and the same cannot be sustained - Appeal allowed - decided in favor of appellant.
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