Tribunal Decides Rule 6(3) Cenvat Credit Rules Inapplicable to Ammonium Sulphate in Cyanide Production.

The Tribunal ruled in favor of the appellant, setting aside the impugned orders and allowing the appeals. It was determined that Rule 6(3) of the Cenvat Credit Rules does not apply to the by-product Ammonium Sulphate, which arises during the manufacture of Potassium Cyanides and Sodium Cyanides, based on established precedent in the appellant's previous cases.

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Issues involved:
Whether the appellant is required to pay an amount u/s Rule 6(3) of Cenvat Credit Rules for the by-product Ammonium Sulphate arising during the manufacture of final products Potassium Cyanides and Sodium Cyanides.

Judgment Details:

Issue 1: Liability to pay under Rule 6(3) of Cenvat Credit Rules
The appellant argued that based on previous decisions in their own case, Ammonium Sulphate, as a by-product, is not liable for payment under Rule 6(3). The Tribunal noted that in previous orders, it was established that Ammonium Sulphate is indeed a by-product arising during the manufacture of final products. As such, the demand under Rule 6(3) was found to be not applicable. The impugned orders were set aside, and the appeals were allowed based on the settled issue in the appellant's own case.

Conclusion:
The Tribunal ruled in favor of the appellant, setting aside the impugned orders and allowing the appeals based on the established precedent regarding the non-applicability of Rule 6(3) to the by-product Ammonium Sulphate in the course of manufacturing final products Potassium Cyanides and Sodium Cyanides.

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