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TMI Blog2010 (3) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... n the course of manufacture of Liquid Glucose, Gluten, and Spent Carbon emerge as unavoidable by-products both of which are fully exempted from duty. The point of dispute is as to whether in respect of clearances of Gluten and Spent Carbon an amount equal to their sale value was payable by the Respondents in terms of Rule 6(3)(b) of the Cenvat Credit Rules, 2002, as the Respondent have not maintained separate account and separate inventory of the inputs meant for use in the manufacture of dutiable finished products and the inputs meant for use in manufacture of exempted finished products. It is on this basis that a show cause notice dated 4-8-2005 was issued to the Respondent for demand of Rs. 4,19,791/- alongwith interest from the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacture of dutiable finished products and exempted finished products are not maintained, the provision of sub-rule (3) of Rule 6 would become applicable irrespective of hardship in maintaining of account and following the requirement of Rule 6(2). 2.2 Miss Asmita Nayak, Advocate, the learned Counsel for the Respondent pleaded that in this case product to be manufactured by the Respondent is Liquid Glucose, not Gluten or Spent Carbon, that Gluten and Spent Carbon emerge as unavoidable By-product; that cenvated inputs have been used in the manufacture of liquid glucose, not in the manufacture of unavoidable by-products - spent carbon and gluten, that it is the judgements of the Tribunal in the case of Narmada Gelatines Ltd. v. CCE, Bho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Piramal (India) Ltd. the respondents were manufacturing two finished products and Vitamin 'A' falling under Chapter heading 29.36 and Animal Feed supplement falling under Chapter Heading 23.02 of the Schedule to the Central Excise Tariff Act, 1985 and while Vitamin 'A' is liable to central excise duty, animal feed supplement was not liable to central excise duty, but since common inputs in respect of which Cenvat credit had been taken had been used in the manufacture Vitamin 'A' falling under Chapter Heading 29.36 and Animal feed supplement and separate account and inventories of the inputs used in the manufacture of dutiable and fully exempt product had not been maintained, the department invoked Rule 6(3)(b) and had demanded an amount e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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