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2016 (12) TMI 1214 - CESTAT KOLKATADemand u/r 14 of CENVAT Credit Rules, 2004 read with Section 11A of the Central Excise Act, 1944 - manufacture of pig iron falling under Chapter 72 - in the course of manufacture of the pig iron, bolder slag comes into existence at the bottom of the furnace which is not liable to excise duty. That first appellate authority in para 5 of Order-in-Appeal dated 5/12/2012 has held that amount with respect to exempted goods (boulder slag) is payable under Rule 6 of the CENVAT Credit Rules, 2004. It is the case of the appellant that the raw material on which the CENVAT Credit is used are not for the manufacture of boulder slag and no amount under Rule 6 of the CENVAT Credit Rules, 2004 is payable. Held that: - Appellant is the manufacturer of pig iron and is taking CENVAT Credit on the raw materials used for the manufacture of pig iron. All the inputs utilised in the manufacture of pig iron and boulder slag is only waste in the manufacture of pig iron. The CENVAT Credit is, therefore, not taken specifically for the manufacture of boulder slag. It has been held by the Court that wastes like sugarcane coming into existence in the manufacture of sugar cannot be held to be excisable for the purpose of payment of amounts under Rule 6 of the CENVAT Credit Rules. Accordingly, appeal filed by the Appellant is allowed by setting aside Order-in-Appeal dated 5/12/2012 by holding that the materials are not used in the manufacture of exempted boulder slag but are only used in the manufacture of pig iron - appeal allowed - decided in favor of appellant.
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