TMI Blog2015 (1) TMI 1300X X X X Extracts X X X X X X X X Extracts X X X X ..... decision of Bombay High Court in the case of Rallis India Ltd. Vs. Union of India [2008 (12) TMI 46 - HIGH COURT BOMBAY] and decision of Supreme Court in the case of Union of India Vs. Hindustan Zinc Ltd. [2014 (5) TMI 253 - SUPREME COURT] held that where by-products waste or scrap emerge during the course of manufacture, emergence of such product cannot be considered as manufacture of final produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant had not maintained separate accounts for inputs and input services, demand has been confirmed requiring the appellant to pay the amount as prescribed under Rule 6(3) of Cenvat Credit Rules 2004 with interest. Mandatory penalty also has been imposed. 2. Learned counsel submits that the waste, scrap or dust etc. which arise during the course of manufacture of plywood cannot be considere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in this Rule, a combined reading of Rules 57A, 57B and 57D along with Rule 57CC becomes inevitable. We have already reproduced Rule 57D above. It can be easily discerned from a combined reading of the aforesaid provisions that the terms used are inputs , final products , by-product , waste products , etc. We are of the opinion that these terms have been used taking into account commercial re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submission of the learned Secretary General that judgment in GAIL s case is not applicable. Significantly, the question as to whether Rule 57CC will apply when by-products are cleared without payment of duty came for discussion in that case. It was held that so long as the lean gas was obtained as a by-product and not as a final product, Rule 57CC will not apply. We are, therefore, of the view tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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