TMI Blog2010 (8) TMI 292X X X X Extracts X X X X X X X X Extracts X X X X ..... , will not change the character of "Tobacco refuse" from by-product to final product - assessee is not liable to pay amount of 8%/10% in terms of Rule 6 of cenvat credit rules, 2004, set aside - E/1521-1523/2009 - A/1309-1311/2010-WZB/AHD - Dated:- 19-8-2010 - Ms. Archana Wadhwa, Member (J) and Shri B.S.V. Murthy, Member (T) REPRESENTED BY : Shri Willingdon Christian, Advocate, for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 005-C.E., dt. 24-2-2005, the assessee is required to pay 10% amount of the value of the said exempted by-product "Tobacco refuse" in terms of Rule 6 of Cenvat Credit Rules, 2004, inasmuch as the appellants were not maintaining separate accounts of the inputs used in the dutiable as well as exempted final product. The show cause notices issued to the appellants were adjudicated by the original adju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inasmuch as in the present case the "Tobacco refuse" is a final product, which is charged to duty but is exempted from payment of duty by virtue of Notification No. 3/2005-C.E., the judgment of the Mumbai High Court would not apply. He, accordingly rejected the appeal. Hence, the present appeal. 3. After hearing both sides, we find no merits in the above distinctions drawn by the appellat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore Mumbai High Court; inasmuch as Mother Liquor was a specified item and was exempted by way of issuance of particular notification. However, Hon'ble High Court held that inasmuch as Mother Liquor was a by-product which comes into existence during the course of manufacture of final product the assessee is not liable to pay amount of 8%/10% in terms of Rate 6. 4.In view of the foregoing discuss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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