TMI Blog2010 (3) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... d products. Held that - in the light of the decision of Narmada Gelatines Ltd. v. CCE, Bhopal, 2009 -TMI - 32224 - CESTAT NEW DELHI, demand in terms of Rule 6(3)(b) of Cenvat Credit Rules, 2004 not sustainable. No infirmity in impugned order. - E/23/2008-SM - 402/2010-SM(BR)(PB) - Dated:- 18-3-2010 - Shri Rakesh Kumar, Member (T) Shri S.K. Bhaskar, SDR, for the Appellant. Miss Asmita Nayak, Advocate, for the Respondent. [Order (Oral)]. - Facts giving rise to this appeal by the Revenue are, in brief, as under : - 1.1 One of the products being manufactured by the Respondents is Liquid Glucose which is manufactured from wheat and rice and common input used are Hydro Choloric Acid, Enzyme and Activated carbon in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peals) vide Order-in-Appeal dated 4-10-2007 dismissed the department's appeal. It is against this order that the department has filed appeal before the Tribunal. 2. Heard both sides. 2.1 Shri S.K. Bhaskar, learned D.R., assailed the impugned order reiterating the grounds of appeal and pleaded that the Commissioner (Appeals)'s order is not correct in view of the recent judgment of the Bombay High Court in the case of CCE, Thane v. Nicholas Piramal (India) Ltd., reported in 2009 (244) E.L.T. 321 (Bom.) wherein the Hon'ble High Court has held that when common Cenvated inputs are used in the manufacture of dutiable as well as exempted finished products and as per condition of Rule 6(2) of Cenvat Credit Rules separate account and inventories ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material is wheat and rice, and enzyme, Hydro-choloric Acid and Activated carbon are used in processing the material. In the course of processing of wheat and rice to obtain liquid glucose, Gluten and spent carbon emerge as unavoidable by-products and even if the respondent want they cannot maintain separate account and inventories of inputs used for the manufacture of liquid glucose and inputs meant for manufacture of Gluten and spent carbon as gluten and spent carbon are unavoidable by-products, not the products which the Respondent wanted to manufacture. In my view in this case, it is the judgment of Rallis India Ltd. (supra) and the Tribunal's decision in the case of Narmada Gelatines Ltd. (supra) which are applicable to the facts of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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