Manufacturing waste exempt from excise duty under Cenvat Credit Rules

The Tribunal held that the Slag arising during the manufacturing of MS Billets was exempted waste and not excisable, therefore not subject to Rule 6(2) or Rule 6(3) of the Cenvat Credit Rules, 2004. The impugned order passed by the Commissioner was deemed unsustainable in law, and the appeal in favor of the appellant was allowed.

---

---

Issues:
- Whether the appellant is liable to pay excise duty on the product Slag arising during the manufacture of MS BilletsRs.
- Whether the provisions of Rule 6(2) and Rule 6(3) of the Cenvat Credit Rules, 2004 are applicable in this caseRs.
- Whether the impugned order passed by the Commissioner is sustainable in lawRs.

Analysis:
- The appeal was against the order allowing the Department's appeal and setting aside the Order-in-Original due to the appellant's failure to maintain separate accounts for dutiable and exempted goods during the manufacture of MS Billets, leading to a demand for payment under Rule 6(3) of Cenvat Credit Rules, 2004.
- The appellant argued that the Slag arising during manufacturing is exempted under Notification No. 12/2012-CE and is not excisable, citing relevant case laws supporting their position.
- The Department contended that the impugned order was valid, supporting the findings against the appellant.
- The Tribunal found that the Slag was exempted waste arising during manufacturing, not excisable, and not subject to Rule 6(2) or Rule 6(3) of the Cenvat Credit Rules, 2004, as supported by previous decisions. The impugned order was deemed unsustainable in law and set aside in favor of the appellant.

---