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TMI Blog2015 (10) TMI 2208X X X X Extracts X X X X X X X X Extracts X X X X ..... of appeal No. E/10832/2013 and is being taken up for disposal as issue involved in all the three appeals is same. 2. Learned Advocate appearing on behalf of the appellant argued that the issue involved in these appeals is whether appellant is required to pay amounts at a particular rate on the value of exempted goods (Bio Feed) cleared by the appellants under provisions of Rule 6 of the Cenvat Credit Rules, 2004. It was his case that the duty paid inputs are used in the manufacture of Calcium Gluconate, Enzymes, Flavours etc. That certain by product/waste, which are generated during the manufacturing of these products, are used for making certain by products including Bio Feed. It was his case that no duty paid inputs are directly used in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igh Court order dated 09.01.2013 in the case of Commissioner of Central Excise & Customs, vs Anil Products Ltd. (Tax Appeal No. 839, 840 and 846 of 2012). It is observed from the case law decided by Supreme Court in Union of India vs Hindustan Zinc Ltd.(Supra) that the same was with respect to exempted Sulphuric acid which comes into existence during melting of ore into metal. With respect to exempted products following observations were made by the Apex Court in Para 20 of the case law, which are relevant and are reproduced below:- "20. Let us now examine the position contained in Rule 57CC on the touchstone of the aforesaid position. No doubt, Rule 57CC requires an assessee to maintain separate records for inputs which are used in the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xempted sulphuric acid is not attracted." In the light of observations made by the Apex Court it has to be seen whether duty paid inputs, which are used by the appellants, have any direct connection in the manufacture of Bio Feed. As per the argument made by the appellant Bio Feed is made from the waste generated in the manufacturing of products like Calcium Gluconate, Enzymes, Flavours, which are cleared on payment of duty. No evidence has been produced by the Revenue that duty paid inputs are directly used in the manufacture of exempted byproduct Bio Feed. In the absence of any such corroborative evidence, duty paid inputs used by the appellant will be deemed to have been used in the manufacture of dutiable goods Calcium Gluconate, Enzym ..... X X X X Extracts X X X X X X X X Extracts X X X X
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