TMI Blog2017 (12) TMI 950X X X X Extracts X X X X X X X X Extracts X X X X ..... rwise cannot be denied. In case of removal of waste or by-product Rule 6(3) has no application - appeal allowed - decided in favor of appellant. - E/87498, 87499, 87507, 87512, 87516, 87517, 87518, 87520, 87522, 87524, 87539, 87540, 87543, 87544, 87547, 87548, 87550/2017 - A/91564-91580/17 - Dated:- 13-12-2017 - Mrs. Archana Wadhwa, Member ( Judicial ) Shri V. B. Gaikwad, Advocate for the Appellant Shri J.J. Sahu, AC(AR) for the Revenue ORDER Per: Mrs. Archana Wadhwa. The issue involved in all the 17 (seventeen) appeals is identical, the same are being disposed of by a common order. 2. Ld. Counsel for the appellants argued that reversal of cenvat credit has been sought invoking Rule 6 of the Cenvat Credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judgments. In the case of Rallies India Ltd. Vs. Union of India - 2009 (233) ELT 301 (Bom.) the Hon'ble Bombay High Court has held that the provisions of Rule 57CC which pari materia to Rule 6 of the Cenvat Credit Rules 2004, in case of waste arising during the course of manufacture of final product, Rule 57CC is not applicable. It was also held in the said judgment that liability under Rule 57CC arises only for final product and not for waste the Hon'ble High Court also considered the provisions of Rule 6 of Cenvat Credit Rules 2004. The similar issue was considered in the case of Union of India Vs. Hindustan Zinc Ltd. (supra) wherein it was held that the Sulfuric Acid which is generated as a by product recovery of 8% under Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, refuse or bye product, Similarly, CENVAT is not to be denied if the inputs are used in any intermediate of the final product even if such intermediate is exempt from payment of duty. The basic idea is that CENVAT credit is admissible so long as the inputs are used in or in relation to the manufacture of final products, and whether directly or indirectly. From the above para, it is clear that if any input is contained in waste by product or goods the cenvat credit shall not be denied. If rule 6(3) is made applicable in these goods this clarification will stand redundant. If legislator has intention even to apply Rule 6(3) on waste or by-product, refuse then either this para should have been amended or omitted. Since this clarificati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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