By-product clearances and Cenvat reversal: blast furnace gas not liable to the 8% amount under settled precedent

Blast furnace gas generated as a by-product in the manufacturing process was held not liable to the amount demanded under Rule 57AD of the Central Excise Rules, 1944 and Rule 6(3)(b) of the Cenvat Credit Rules, 2001, 2002 and 2004. The Tribunal treated the issue as already settled by its earlier order in the assessee's own case, which had followed the Supreme Court's ruling in Hindustan Zinc Ltd. on the non-applicability of the 8% amount in the relevant facts. The dispute was therefore considered no longer res integra, and the Revenue's appeal failed.

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Issues: Whether blast furnace gas generated as a by-product during the manufacturing process was liable to an amount under Rule 57AD of the Central Excise Rules, 1944 and Rule 6(3)(b) of the Cenvat Credit Rules, 2001, 2002 and 2004.

Analysis: The dispute was held to be covered by the Tribunal's earlier order in the assessee's own case, which had followed the Supreme Court decision in Hindustan Zinc Ltd. on the non-applicability of the 8% amount under Rule 6 in the relevant circumstances. As the issue had already been settled on the same facts and legal position, it was treated as no longer res integra.

Conclusion: The blast furnace gas was not liable to the demanded amount under the cited provisions, and the Revenue's appeal failed.

Ratio Decidendi: Where a by-product clears in the factual matrix already covered by binding precedent, the demand of 8% under Rule 6 of the Cenvat Credit regime is not sustainable.

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