TMI Blog2015 (6) TMI 432X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal against the adjudication Order of the Commissioner of Central Excise dated 21.09.2005 wherein an amount of ₹ 2,46,06,662/- was demanded and confirmed under Rule 57CC of the Central Excise Rules, 1944. 2. The brief facts of the case are that the appellants are manufacturers of gelatin by using input Hydrochloric acid. In the process of manufacture of final product hazardous waste emerges known as Mother Liquor. This liquor is treated with other chemicals and subsequently cleared without payment of duty. The department alleged that the common input HCL is used for manufacture of gelatin which is a dutiable and exempted product. The period involved in this case relates to September, 1996 to February, 2003. 3. After hearing bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able final product cannot be denied or varied. In the present case, excise duty is payable on the final product namely gelatin and as per Rule 57D, even though no excise duty is payable on the waste mother liquor arising in the manufacture of gelatin, the petitioner is entitled to avail the entire credit of duty paid on HCL which is used as input. 24. It is, however, contended by the revenue that on the introduction of Rule 57CC, the petitioner was liable to maintain separate account so as to ascertain the quantity of HCL used in the manufacture of exempted phosphoryl A and B , and since no such account was maintained the petitioner was liable to pay amount at 8% of the value of the phosphoryl A and B under Rule 57CC. 25. There i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the present case, the petitioner is not required to reverse the credit of duty on HCL at the time of clearance of the waste mother liquor and consequently there would not be any obligation to pay presumptive amount under Rule 57CC for not maintaining separate account. 27. The fact that the waste mother liquor arising in the manufacture of gelatin was further processed to manufacture exempted phosphoryl A and B would not attract Rule 57CC, because, if Rule 57CC was not applicable at the time of clearance of the waste mother liquor arising in the manufacture of dutiable gelatin, then the said rule cannot be applied merely because mother liquor was further processed to manufacture exempted final product, namely, phosphoryl A and B . In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facture of exempted final product, viz. Phosphoryl A B . 33. For all the aforesaid reasons, we find it difficult to sustain the decision of the Tribunal in the case of Binani Zinc Limited (supra) which is approved by the Larger Bench. 34. In the result, the petition succeeds. Rule is made absolute in terms of prayer (a) by setting aside the decision of the Larger Bench dated 13-12-2006 and also the order in original dated 23-12-2004. However, there will be no order as to costs. 4. The Revenue preferred Civil Appeal No. 5322/2010 before the Hon ble Supreme Court against the above High Court order. The Hon ble Supreme Court in the case of UOI Vs. Hindustan Zinc Ltd. 2014 (303) ELT 321 (S.C.) decided batch of appeals includin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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