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M/s. Param Industries Limited Versus C.C.E. & S.T., Indore

2017 (8) TMI 397 - CESTAT NEW DELHI

CENVAT credit - common inputs used in dutiable as well as exempt goods - N/N. 115/75-CE dated 30.04.1975 - Held that: - no common inputs were used for generation of the byproduct /waste. Thus, the embargo created in Rule 6 ibid for reversal of amount equal to 8% / 10% of sale price of the said goods will not be applicable in the facts and circumstances of the case. - With regard to Acid Oil, this Tribunal in the case of Morvi Vegetable Products Ltd. [2011 (10) TMI 254 - CESTAT, AHMEDABAD] h .....

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n within the stipulated time limit of 6 months is a procedural lapse and the same cannot be strictly applied to deny the benefit available under the statute. - Appeal allowed - decided in favor of appellant. - E/56968/2013-EX[SM] - A/55551-55552/2017-SM[BR] - Dated:- 27-4-2017 - Mr. S.K. Mohanty, Member (Judicial) Mr. Rajesh Rawal, Advocate for the Appellant Mr. R.K. Mishra, AR for the Respondent ORDER PER: S.K. MOHANTY Brief facts of the case are that the appellant is engaged inter alia, in .....

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essing of oil, some by-products namely, Soya Lecithin, Oil Sludge, Acid Oil and D.O. Desilete are generated, which are exempted from payment of duty by virtue of Notification No.115/75-CE dated 30.04.1975. It was further observed that the appellant had not maintained separate accounts in respect of the quantity of inputs used in manufacturing dutiable and exempted goods. Accordingly, the Department entertained the view that the appellant was required to pay an amount equal to 8%/10% of sale pric .....

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Commissioner of Central Excise, Indore vide order dated 19.09.2011 has rejected the application dated 19.07.2011 of the appellant. Hence, the present Appeals No.E/56968/2013 and E/2926/2011-EX[SM] were filed by the appellant before this Tribunal. 2. The ld. Advocate for the appellant has filed the written note of submissions, explaining inter alia, the generation of by products within the factory, which are extracted herein below:- (i) Soya Sludge By crushing soya seeds, crude soya bean oil is .....

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i) Soya Lecithin The aforesaid crude oil, before it is sent to the refinery for manufacturing refined oil, is heated at 65-70 degree centigrade and water to the extent of 2.5-3% is added to it. After giving retention for 25-30 minutes, the oil is centrifuged in centrifuge to separate the gums. These gums contain 40% moisture. These are dried in vacuum dryer, then are further cooled and the same is called Soya Lecithin. No input/chemical is used in the said Soya Lecithin. (iii) Acid Oil While ref .....

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at Credit Rules, 2004. In this context, he has relied on the Final Order No.55562-55563/2016 passed by this Tribunal in the case of Ruchi Soya Industries Ltd. With regard to Acid Oil, the ld. Advocate has relied on the decision of this Tribunal in the case of CCE, Rajkot Vs. Morvi Vegetable Products Ltd. - 2010 (278) ELT 515 (Tri.-Admd.) to state that Acid Oil is not covered by the provisions of Rule 6 ibid, and therefore, there is no requirement of reversal of amount in respect of the value on .....

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ropped the demand. Thus, he submitted that the present dispute in so far as, the same relates to the period 01.03.2003 to 31.03.2004, the issue stands settled and there is no dispute on this aspect of the matter. With regard to the demand for the period April 2004 to February, 2005, the ld. Advocate submitted that the appellant had reversed/paid the entire Cenvat Credit availed in respect of the inputs used in manufacture of both exempted and dutiable goods and also exercised the option for such .....

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recorded in the impugned order. 4. Heard both sides and perused the records. 5. On perusal of the written note filed by the appellant, I find that no common inputs were used for generation of the byproduct /waste. Thus, the embargo created in Rule 6 ibid for reversal of amount equal to 8% / 10% of sale price of the said goods will not be applicable in the facts and circumstances of the case. With regard to Acid Oil, I find that this Tribunal in the case of Morvi Vegetable Products Ltd. (supra) .....

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riate interest amount has also been paid by the appellant, I am of the opinion that the restrictions contained in Rule 6 ibid for payment of amount on the exempted goods will not be applicable in this case. 6. Further, I find that the option exercised by the appellant for payment of amount in terms of Section 72 (1) of the Finance Act, 2010 for the period 01.03.2003 to 31.03.2004 was accepted by the Commissioner of Central Excise vide Order dated 23.04.2012, wherein the proceedings initiated aga .....

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