TMI Blog2015 (10) TMI 338X X X X Extracts X X X X X X X X Extracts X X X X ..... Per : Mr.P.K. Das, The relevant facts of the case, in brief, are that the appellants are engaged in the manufacture of Carbon Black, classifiable under Chapter Heading 2803 00 10 of the Schedule to the Central Excise Tariff Act 1985. The main input is Carbon Black Feed Stock (CBFS). During the process of manufacture of Carbon Black, Lean Gas is emerged as by-product, which is used for generation of electricity. The electricity was partly used in the plant and partly sold. 2. According to the Revenue, electricity is exempted and therefore they are liable to pay the amount 8% / 10% on value of the electricity under Rule 6 of the Cenvat Credit Rules. The Learned Advocate for the appellant, relied upon the following decisions: 1. Hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... production of something else that is carbon black. Rule 57D(1) of the Central Excise Rules at the relevant time provided that credit of specified duty shall not be denied or varied on the ground that part of inputs is contained in any waste, refuse, or by-product arising during the manufacture of final product, or that the inputs have become waste in or in relation to the manufacture of the final product, whether or not such waste, refuse or by-product is exempted from whole of the duty of excise leviable thereon or chargeable to nil rate of duty or is not specified as a final product under Rule 57A . It is thus apparent from the provisions of Rule 57D(1) that the credit shall not be denied on the ground that part of the inputs is contain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tain raw materials, he not only creates the product but also creates other goods which are refuse, waste or by-product. The classification of goods into final products, by-products, waste and refuse is mainly on commercial consideration and the Plan of manufacture. The Tribunal in Gas Authority of India Ltd. case, after referring to definition of by-product as given in Chamber s Dictionary and Webster s Compressed Dictionary has held that the lean gas obtained by processing natural gas to remove propane and butane is nothing but a by-product and the provisions of Rule 57CC were not applicable to lean gas and the benefit of Rule 57D was extended. Following the ratio of these decisions, we are also of the view that provisions of Rule 57CC ..... X X X X Extracts X X X X X X X X Extracts X X X X
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