TMI Blog2021 (10) TMI 307X X X X Extracts X X X X X X X X Extracts X X X X ..... , in that process the said by-products are also removed. Therefore, from the nature of mining of Lignite as discussed above, it is clear that the Silica Sand and Ball Clay are generated unavoidably which is inevitable. Any input/input services contained in any by-product/waste/refuse, Cenvat Credit cannot be varied or denied. With this logic demand under Rule 6 in respect of by-product is not applicable - Once it is established that the product in question are by-product then it is settled in respect of by-product demand under Rule 6 will not sustain. Accordingly, in the present case also, Silica Sand and Ball Clay being a by-product, no demand under Rule 6 shall sustain. Appeal allowed - decided in favor of appellant. - Excise Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Upheld in 2015 (320) ELT A343 (SC) Balrampur Chini Mills Ltd. 2019 (368) ELT 276 (ALL) UOI vs DSCL Sugar Ltd. 2015 (322) ELT 769 (SC) CC Raipur vs Sharda Energy and Minerals 2014 (34) STR 618 Bajaj Hindustan Ltd. Vs CCE Meerut 2012 (286) ELT 397 (Tri. Del.) Triveni Engg. Ind. Ltd. Vs CCE Allahabad 2014 (302) ELT 246 CC vs Auto Ignition Ltd. 2008 (226) ELT 14 (SC) CCE vs Sangrur Agro Ltd. 2006 (202) ELT 835 Upheld by P H High Court 2010 (254) ELT 25 (P H) 2.1 He further submits that one of the show cause notice is completely barred by limitation. The issue in the present case is one of the interpretation of Rule 6 and the appellant have acted on the basis of the interpretation for which appellant s bonafide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used the records. To understand that which is the main product and which are by-product, it is necessary to see the nature of work contracted with the contractor. Some relevant Clauses of contract are reproduced below:- Description of Work i Work of Lignite Mining, Loading and Dispatch: Work of Lignite Mining, Loading and Dispatch which includes excavation, transportation and unloading of OB/IB up to dump, dozing, spreading, levelling, dust suppression, road formation, excavation and loading of lignite in to consumer trucks/ dumpers from mines face, loading/ unloading of lignite from trucks / dumpers in case of excess/ shortage (Vadh/ Ghat) in desired tonnage of lignite to be loaded in Trucks/ dumpers and related ancillary activi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or mining of Lignite while doing the excavation to achieve Lignite, the over burden has to be removed and this over burden constitute Silica Sand and Ball Clay etc., thereafter the Lignite is excavated. With this it is clear that to excavate the Lignite unavoidably upper layer has to be removed and, in that process the said by-products are also removed. Therefore, from the nature of mining of Lignite as discussed above, it is clear that the Silica Sand and Ball Clay are generated unavoidably which is inevitable. 5. Learned Counsel has also submitted a chart giving ratio of main product i.e. Lignite, Silica Sand and Ball Clay according to which almost 98% to 99% is the Lignite and remaining very small percentage of these by products. This ..... X X X X Extracts X X X X X X X X Extracts X X X X
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