TMI Blog2017 (11) TMI 1766X X X X Extracts X X X X X X X X Extracts X X X X ..... 7, E/86191/17, - - - Dated:- 15-11-2017 - Raju, Member (T) For Appellant: T.C. Nair, Advocate For Respondents: Sanjay Hasija, Supdt. (AR) ORDER Raju, 1. These appeals have been filed by seventeen appellants. 2. Ld. Counsel for the appellants argued that reversal of cenvat credit has been sought invoking Rule 6 of the Cenvat Credit Rules in respect of Pressmud, Bagasse and Compost, Boiler Ash etc. cleared by them. He pointed out that all these products are waste and refuse of the process of manufacture of finished goods. Ld. Counsel for the appellants relied on the decision of the Tribunal in the case of Shivratna Udyog Ltd. Ors. vide Order No. A/89563-89568/17/SMB dated 04.08.2017 wherein it has been held tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C 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 Rule 6 of Cenvat Credit Rules 2004 is not correct. In view of the above judgments the issue whether Rule 6(3) is applicable in case of removal of non-dutiable waste or by product is settled in favour of the assessee. As regard the submissions made by Ld. ARs that after insertion of explanation in Rule 6(1), even in case of non-excisable goods, the reversal under Rule 6(3) is required. In this regard he ref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at 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 clarification is still in force the Cenvat credit either by way of Rule 6(3) or otherwise cannot be denied. As per my above discussion, I am of the considered view that in case of removal of waste or by-product Rule 6(3) has no application. Accordingly, the impugned orders are set aside. The appeals are allowed. 5. Relying on the said order, appeals are allowed. (Pronounced in Court on 15.11.2017.) - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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