TMI Blog2018 (9) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... ot liable to pay the amount 8% / 10% on value of the electricity under Rule 6 of the Cenvat Credit Rules - credit allowed - appeal allowed - decided in favor of appellant. - Appeal No. E/12768/2014-DB - A/11653/2018 - Dated:- 1-8-2018 - SHRI RAMESH NAIR, MEMBER (JUDICIAL) And SHRI RAJU, MEMBER (TECHNICAL) For Appellant: Shri J C Patel (Advocate) For Respondent: Shri Sameer Chitkara (AR) ORDER Per: Ramesh Nair Brief facts of the case are that the appellant is engaged in the manufacture of the Carbon Black out of the import of inputs namely, Carbon Black Feed Stock on which the appellant availed the CENVAT Credit. In the course of manufacture of Carbon Black from Carbon Black Feed Stock a waste gas, Lean Ga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the submission made by both the sides and perused the records. We find that very same issue in the appellant s own case has been decided by this Tribunal Vide order dated 09.04.2015 as cited above wherein the Coordinate Bench of this Tribunal passed the following order: The relevant facts of the case, in brief, are that the appellants are engaged in the manufacture of Carbon Black, classifiable under Chapter Heading 2803 00 10 of the Schedule to the Central Excise Tariff Act 1985. The main input is Carbon Black Feed Stock (CBFS). During the process of manufacture of Carbon Black, Lean Gas is emerged as by-product, which is used for generation of electricity. The electricity was partly used in the plant and partly sold. 2. Accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut a by-product in the process of manufacture of carbon black. The definition of the by-product as referred to by the learned Senior Departmental Representative supports the view that the off-gases are nothing but by-product as the same has been generated incidentally in the production of something else that is carbon black. Rule 57D(1) of the Central Excise Rules at the relevant time provided that credit of specified duty shall not be denied or varied on the ground that part of inputs is contained in any waste, refuse, or by-product arising during the manufacture of final product, or that the inputs have become waste in or in relation to the manufacture of the final product, whether or not such waste, refuse or by-product is exempted from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te the benefit available under Rule 57D(1) to a by-product. The marketability or otherwise of by-product is not really an issue .. The Tribunal again in the case of Gas Authority of India Ltd. (supra) observed that when a manufacturer sets out to create a product out of certain raw materials, he not only creates the product but also creates other goods which are refuse, waste or by-product. The classification of goods into final products, by-products, waste and refuse is mainly on commercial consideration and the Plan of manufacture. The Tribunal in Gas Authority of India Ltd. case, after referring to definition of by-product as given in Chamber s Dictionary and Webster s Compressed Dictionary has held that the lean gas obtained by proces ..... X X X X Extracts X X X X X X X X Extracts X X X X
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