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2021 (1) TMI 710 - AT - Central ExciseSeeking reversal of CENVAT Credit - demand of interest and penalty as well - exempt goods or not - removal of byproducts (i.e spent sulphuric Acid) under serial No 32 of Notification No. 04/2006 –CE dated 1st March, 2006 to fertilizer manufacturing units following the procedure laid down under Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods)Rule 2001 - applicability of Rule 6 (3)(b) and Rule 6 (3)(i)(ii) of Cenvat Credit Rules, 2004 - HELD THAT:- The appellant are engaged in manufacture of Chemicals namely Dichloro Nitro Benzene, etc. The appellants are availing Cenvat Credit in respect of certain inputs and inputs services during the process of manufacture Sulphuric Acid also comes into existence. The appellants were clearing such Sulphuric acid to manufacturers of fertilizers by availing benefit of Procedure Chapter X (Cleared at Nil Rate of Duty). Revenue is of the opinion that since common inputs and input services have been used for generation of Sulphuric Acid and appellant has not maintained separate records, the Appellant is liable to pay 5% on the value of clearances of Sulphuric Acid cleared under exemption Notification No 4/2006-CE 01.03.06 in terms of Rules 6(3) of the Cenvat Credit Rule. Identical issue was decided by the tribunal in the case of M/S NIRMA LTD. VERSUS CCE AHMEDABAD [2011 (4) TMI 379 - CESTAT, AHMEDABAD] where it was held that Commissioner(Appeals)'s reference to Hon'ble Supreme Court s judgment in the case of M/s Nirma Chemical Works was on altogether different ground as it dealt with classification of Spent Sulphuric Acid and has got nothing to do with the provisions of Rule 6(3) of MODVAT Credit Rules. Appeal allowed - decided in favor of appellant.
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