TMI Blog2018 (11) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... It is well settled that slag arising in the course of manufacture of iron and steel is a waste and that the provisions of Rule 6 of CCR, 2004 are not attracted. Appeal allowed - decided in favor of appellant. - E/20810/2018-SM, E/20880/2018-SM, E/20881/2018-SM - Final Order No. 21639-21641/2018 - Dated:- 23-10-2018 - MR. S.S GARG, JUDICIAL MEMBER Mr. M.S. Nagaraja, Adv For the Appellant Mr. K. Murali, Superintendent (AR) For the Respondent ORDER Per: S.S GARG Appellants have filed these three appeals against the impugned order dated 29.1.2018 and 26.3.2018 passed by the Commissioner (A) whereby the Commissioner (A) has rejected the appeal of the appellant. The common issue involved in all the three ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l the slag arises in the EOF as inevitable waste. The EOF slag is in the form of slurry. On further lancing with oxygen, the slag floats to the surface and is taken out before tapping hot metal. The hot metal is transferred from EOF to the Ladle Refining Furnace (LRF) where Ferro Alloys are charged to obtain the required grade of steel. The appellants have taken CENVAT credit on inputs and input services used in or in relation to manufacture of alloy and non-alloy steel in the form of billets, blooms and rounds, as dutiable final products in terms of Rule 2(k), Rule 2(l) and Rule 3 of the CENVAT Credit Rules, 2004. In the process of manufacture of dutiable steel, the slag arises as inevitable waste product. There is no manufacture of slag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... admittedly a waste product arises in the course of manufacture of steel, the provisions of Rule 6 of CCR, 2004 have no application even after 1.3.2015. He further submitted that this issue is no more res integra and in the appellant s own case for an earlier period, this Tribunal vide its Final Order No.20404/2015 dated 20.2.2015 has held that Rule 6 will not apply in a case where exempted by-products or waste emerge in the course of manufacture of dutiable final products. He also relied upon the following decisions in support of his submissions that in the case of slag generated in the process of manufacture do not attract applicability of Rule 6 of CCR, 2004. (i) UOI vs. Hindustan Zinc Ltd.: 2014 (303) ELT 321 (SC) (ii) Balr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by-products, no liability to reverse a percentage amount of the waste exempted by-products would arise. Similarly, the Hon ble Supreme Court in the case of Commissioner of Central Excise vs. Gas Authority of India Ltd. [2008 (232) E.L.T. 7 (SC)] has considered an identical issue and has held that lean gas which emerges as by-product during the manufacture of the final products, would not call for payment of any percentage amount on its value in terms of erstwhile Rule 6 of CENVAT Credit Rules. The said decision again stands confirmed by a later decision of the Hon ble Supreme Court in the case of Union of India vs. Hindustan Zinc Ltd. [2014 (303) E.L.T. 321 (S.C.)]. 4. In view of the above, we find no reason to interfere in the impug ..... X X X X Extracts X X X X X X X X Extracts X X X X
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