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of <h1>Ammonium Sulphate in Urea Production Not Liable for Duty Under Rule 6(3), CESTAT Ahmedabad Confirms Precedent</h1> In the case before CESTAT Ahmedabad, the issue was whether Ammonium Sulphate used in urea production was liable for duty under Rule 6(3) of the CENVAT ... CENVAT Credit - Ammonium Sulphate used in urea under Rule 6(3) of CENVAT Credit Rules was or was not required to discharge any duty during the impugned period during May 2015 to March 2016 - HELD THAT:- It finds that issue is no more res-integra and has been recently decided based on various other case laws in HINDUSTAN CHEMICALS COMPANY VERSUS COMMISSIONER OF C.E. & S.T. -SURAT-II [2024 (5) TMI 459 - CESTAT AHMEDABAD] in which inter alia, it was held by Division Bench of CESTAT Ahmedabad that the Ammonium Sulphate being a by-product arising out of manufacture of final product, namely Potassium Cyanides and Sodium Cyanides, will not be liable for payment of any amount in terms of Rule 6(3) of the Cenvat Credit Rules, 2004. Conclusion - Ammonium Sulphate, as a by-product from manufacturing Potassium Cyanides and Sodium Cyanides, was not liable for payment under Rule 6(3) of the CENVAT Credit Rules. Appeal allowed. The dispute concerned whether Ammonium Sulphate used in urea attracted liability under Rule 6(3) of the CENVAT Credit Rules for the period May 2015-March 2016, with the appellant having paid 1% duty and the department contending 5% was due. Reliance was placed on multiple CESTAT Ahmedabad precedents, including Hindustan Chemicals Company decisions. The Tribunal found the issue 'no more res-integra' and followed prior holdings that Ammonium Sulphate as a by-product arising from manufacture of final products is not liable under Rule 6(3). The decision reproduced the earlier reasoning: '4. We have carefully considered the submissions made by both sides and perused the records. We find that on the very same issue in the appellant's own case, it has been decided that the Ammonium Sulphate being a by-product arising out of manufacture of final product namely, Potassium Cyanide and Sodium Cyanide, the same will not be liable for payment of an amount in terms of Rule 6(3) of Cenvat Credit Rules, 2004. ....' Appeal allowed with consequential relief.
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