TMI Blog2015 (10) TMI 1699X X X X Extracts X X X X X X X X Extracts X X X X ..... is taken for converting sugarcane raw juice to commercial sugar or molasses which are cleared on payment of duty. In the absence of any evidence on record, to show credit taken inputs used in the making of Bagasse, the ratio of High Court s order in the case of CCE, Ahmedabad-III vs. Nirma Limited (2012 (10) TMI 138 - GUJARAT HIGH COURT) will be applicable. - The assessee in the process of manufacturing soap uses acid slurry and in the process Spent sulphuric acid gets generated as a bye product. Though the products may be different, the ratio laid down by this Court would apply to the facts of the present case. We, therefore, do not think that the Tribunal committed any error in holding against the revenue. - The order passed by CESTAT Del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 28.10.2009 has also been considered and credit is held admissible. That findings of Commissioner (Appeals) are therefore no sustainable. 3. Shri J. Nair (AR) appearing on behalf of the Revenue defended the order passed by the first appellate authori8ty that after amendment of Section 2(d) with effect from 10.05.2008, Bagasse has to be treated as exempted goods and amount as per Rule 6(3) of the Cenvat Credit Rules,, 2004 has been correctly confirmed against the appellant. 4. Heard both sides and perused the case records. The issue involved in the present appeal is whether or not appellant is required to maintain separate record for inputs used in the manufacture of dutiable and exempted goods. It is observed from reply dated 28 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ule (2) imposes an obligation on the manufacturer who manufactures final products and exempted goods from the common input to maintain separate accounts for receipt, consumption and inventory of inputs. Examining the applicability of the aforesaid rules to the facts of the present case, as noted hereinabove, it is not as if more quantity of Hydrochloric Acid is used than that required for manufacturing Gelatin or that by using a smaller amount of Hydrochloric Acid, the production of Mother Liquor could be averted. In the manufacturing process adopted by the assessee, it is not possible to manufacture Gelatin without Mother Liquor coming into existence. Thus, when the entire quantity of input viz. Hydrochloric Acid is used in the manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e course of manufacturing process a by-product viz. Mother liquor also emerges. 4. We are, of course, concerned with different products in the present case. The assessee in the process of manufacturing soap uses acid slurry and in the process Spent sulphuric acid gets generated as a bye product. Though the products may be different, the ratio laid down by this Court would apply to the facts of the present case. We, therefore, do not think that the Tribunal committed any error in holding against the revenue. Tax Appeal is therefore, dismissed. 5. In the case of Indian Potash Limited vs. CCE, Allahabad (supra), CESTAT, Delhi considered CBEC Circular No. 904/24/2009-CX dated 28.10.2009 and following observations were made in Para 6 whil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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