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2022 (5) TMI 650 - HC - Central ExciseReversal of CENVAT Credit - clearance of LPG, which was produced as joint petroleum product with other dutiable petroleum product by chemical reaction/fraction of common blend of raw material is proper - byproduct or not - It is the case of the appellant that the respondent has been availing credit of duty paid on the input and capital goods and input service in terms of the provisions of the CENVAT Credit Rules, 2004 - HELD THAT:- In the case of COMMISSIONER OF C. EX. & CUSTOMS, VADODARA-I VERSUS STERLING GELATIN [2010 (9) TMI 857 - GUJARAT HIGH COURT], the assessee therein had availed credit on hydrochloric acid, which was used in the manufacture of dutiable final product viz. gelatin as well as in the manufacture of exempted goods viz. Di-Calcium Phosphate. The issue before the Court was whether the assessee was required to pay an amount of 8%/10% of the value of exempted goods under Rule 6(3)(b) of the CCR. This Court, held that since the assessee could not have manufactured gelatin (dutiable final product) using a lesser quantity of hydrochloric acid, Rules 6(1) and 6(2) of the CCR would not come into play. The issue whether the LPG is byproduct or otherwise has become academic and need not required to be decide. Appeal dismissed.
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