2017 (10) TMI 429 - AT - Central Excise

Tribunal reverses disallowance of Cenvat credit on 'Spent Sulphuric Acid' for fertilizer production

The Tribunal reversed the decision to disallow Cenvat credit on 'Spent Sulphuric Acid' used in manufacturing LABSA for fertilizer production, following a ... CENVAT credit - by product “Spent Sulphuric Acid” emerging in the manufacturing process of ‘Linear Alkyl Benzene Sulphonic Acid(LABSA) - N/N. 06/2002-CE dated 01.03.2002 - Held that: - similar issue decided in the case of M/s. Advance Detergents Ltd. Versus CCE, Puducherry [2017 (3) TMI 550 - CESTAT CHENNAI], where it was held that spent sulphuric acid not being final product, the appellant cannot be denied of the CENVAT credit available to it on the input used to manufacture LABSA. Mere emergence of spent sulphuric acid does not debar the appellant to this benefit - appeal allowed - decided in favor of appellant. The judgment relates to the reversal of Cenvat credit on 'Spent Sulphuric Acid' in the manufacturing process of LABSA for fertilizer production. The Tribunal allowed the appeal based on a previous decision in the appellant's favor. The recovery order of Rs. 3,97,324/- was set aside.