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TMI Blog2019 (1) TMI 2021X X X X Extracts X X X X X X X X Extracts X X X X ..... the Wires manufactured by the Appellant. 2. The Appellants are engaged in manufacture of various Wires and are availing Cenvat Credit on inputs, capital goods and input services. They received wire rods coils and also hydrochloric acid in order to remove the impurities and rust from the wire rods coils. For removing the impurities etc. the Appellants undertake the pickling process by using hydrochloric acid. The wire rods coils are dipped in the hydrochloric acid tank. Waste Pickle Liquid (WPL) is generated during the process at various steel plants of the appellants at the time of removal of impurities/rust from the coil. The Appellants used to clear WPL to independent buyers on payment of duty on the value determined on the basis of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onfirmed by the Adjudicating Authority with equal penalty vide Order-in-Original dated 4.8.2010. First Appeal filed by the Appellants was rejected by the Commissioner (Appeals), Central Excise, Mumbai Zone-I vide Order-in-Appeal dated 28.2.2011. 3. We have heard learned counsel for the Appellants and learned Authorised Representative for the Revenue and perused the Memo of Appeal filed by the Appellants. In order to understand the issue we have to see what is WPL? Is it a waste or some manufactured product? According to learned counsel, the rust and impurities on the coils are simply removed by way of application of hydrochloric acid on the coil. This process of application of hydrochloric acid on the coil is called pickling process. After ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o remove the scales formed on the surface of such hot rolled coils. The Revenue sought to recover the amount of Rs.1,215/- from the Appellants since according to them 50% of sale proceeds received by the appellant from Indrox by way of credit note is the additional consideration received in terms of Rule 6 of Valuation Rules, 2000. After going through Rule 6 ibid we are of the view that for the purpose of its application the goods have to be excisable goods. But since it has already been held by the Tribunal in the matter of Indian Tube Co. Ltd. (supra) that WPL is not an excisable good, which was later on affirmed by the Hon'ble Supreme Court, therefore Valuation Rules, 2000 has no application on the facts of this case. That being so, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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