TMI Blog2018 (2) TMI 1312X X X X Extracts X X X X X X X X Extracts X X X X ..... be no question of maintaining separate accounts for receipt, consumption and inventory of input - demand set aside - appeal allowed - decided in favor of appellant. - Appeal No. E/10961,11021/2014-DB - Final Order No. A / 10313-10314 /2018 - Dated:- 14-2-2018 - Dr. D. M. Misra, Member ( Judicial ) And Mr. Raju, Member ( Technical ) For the Appellant: Mr. Aditya Tripathi Amal Paresh Dave ( Advocate ) For the Respondent: Mr. S.N. Gohil ( A. R. ) ORDER Per : Dr. D.M. Misra These two appeals are filed, one by the Revenue and another by the assesse against the same order-in-appeal bearing No. RJT-EXCUS-000-APP-572-13-14 passed by the Commissioner of Central Excise (Appeals-I), Rajkot. 2. Briefly stated the facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Rule 6(3) of Cenvat Credit Rules, 2004. In support, he has referred to the judgment of Hon ble Gujarat High Court in the case of Commissioner of Central Excise and Customs Vadodara-I vs Sterling Gelatine 2011 (270) ELT 200 (Guj.). Further, he has submitted that Ld. Commissioner (Appeals) even though held in the impugned order that Wooden rollers, Wooden Battens, Wastage Wooden Battens, Firewood and Saw dust are by-product emerged during the course of manufacture of final products, but allowed the benefit only to the wastage and not in respect of the wooden rollers which is a by-product. It is his contention that the observation of the Ld. Commissioner (Appeals) is bad in law to the extent to confirming demand on wooden rollers which eme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facture of exempted goods. Sub-rule (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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