TMI Blog2018 (5) TMI 1416X X X X Extracts X X X X X X X X Extracts X X X X ..... d be applicable to the present case, where it was held that the demand of cenvat credit on CBFS cannot sustain alleging that lean gas emerged is used for generation of steam. Demand cannot sustain - appeal allowed - decided in favor of appellant. - Appeal Nos. E/41730-41735/2014 - Final Order No. 41518-41523 / 2018 - Dated:- 15-5-2018 - Hon ble Ms. Sulekha Beevi C.S. Member (Judicial) And Hon ble Shri Madhu Mohan Damodhar, Member (Technical) Shri Raghavan Ramabhadran, Advocate For the Appellant Shri K. Veerabhadra Reddy, JC (AR) For the Respondent ORDER Per Bench The appellants are engaged in manufacture of Carbon Black. It is cleared both by them on payment of Excise Duty. The major raw material used by the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eeled outside the factory to TNEB. The appellants had availed cenvat credit on CBFS. In respect of hydrochloric acid and caustic soda, the appellant took cenvat credit only to the extent of these inputs used in generation of steam for production of electricity which was captively consumed in the manufacture of carbon black. Later, the appellants even reversed the credit in respect of these inputs. Thus in effect, no cenvat credit was taken on caustic soda and hydrochloric acid. He referred to paras 4.1, 4.3 in page 5 6 of the appeal paper book. He argued that CBFS is used by appellant only for manufacture of carbon black and that this input is not used for generation of steam / electricity. The allegation in the SCN therefore is fundament ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of Hon ble High Court of Allahabad in the case of Hi-Tech Carbon dt. 30.11.2017 in Central Excise Reference No.3 of 2012 wherein the very same issue was considered and held that the demand of cenvat credit on CBFS cannot sustain alleging that lean gas emerged is used for generation of steam. In the appellant s own case, the very same contention of the appellant was accepted and the Commissioner vide Order-in-Original No.02.03.2016 dt. 24.03.2016 had dropped proceedings. Since the department has accepted the contention of the appellant as reflected in the above decisions, the department cannot take a different. He relied upon the decision of Hon ble High Court of Madras in EID Parry (I) Ltd. 2013 (293) ELT 10 (Mad.). It is also argued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dia Plywoods Ltd. Vs CCE Cochin 1998 (102) ELT 52 (Tribunal). 4. Heard both sides. We have given our anxious consideration to the submissions made by both sides and also perused records carefully. The process of manufacture has been explained. Undeniably, CBFS is an input used for manufacture of Carbon Black. It cannot be said that appellant has procured CBFS for generation of electricity. Appellants have registered for manufacture of Carbon Black by using CBFS as input. The inputs used by them for generation of steam / electricity is only caustic soda and hydrochloric acid. For manufacture of carbon black, the CBFS has to be put to process of burning in the reactor and in such process, lean gas emerges. Such emergence of lean gas cann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if it is demonstrated that the input, CBFS, is used in the manufacture of lean gas and therefore, in the generation of steam / electricity. The process clearly establishes that CBFS is used, in its entirety, in the manufacture of carbon black and consequently, no part of it can be said to have been used in the production of lean gas which is a waste / byproduct which emerges as a technological necessity. I find from the discussions above that the ratio of the Hon ble Supreme Court judgment in the case of Hindustan Zinc Ltd. (supra) are applicable to the present case of SKI both on facts and in law and it cannot be said that the input CBFS has been used in the production of lean gas and therefore cannot be said to have been used in or in re ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
