https://www.taxtmi.com/caselaws?id=209794 Rule 6(3)(b) of the CENVAT Credit Rules, 2004 does not extend to by-products, waste, or residue that arise incidentally during manufacture of dutiable final products. The liability under the CENVAT scheme applies to exempted goods manufactured and cleared as such, not to incidental outputs generated in the manufacturing process. Applying that distinction, the demand for an amount equal to 10% of the value of such exempted by-products was rejected, and the demand and penalty were set aside. The assessee was therefore granted consequential relief. en-us Thu, 28 Apr 2011 00:00:00 +0530 Mon, 30 Dec 2013 11:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=209794 Rule 6(3)(b) of the CENVAT Credit Rules, 2004 does not extend to by-products, waste, or residue that arise incidentally during manufacture of dutiable final products. The liability under the CENVAT scheme applies to exempted goods manufactured and cleared as such, not to incidental outputs generated in the manufacturing process. Applying that distinction, the demand for an amount equal to 10% of the value of such exempted by-products was rejected, and the demand and penalty were set aside. The assessee was therefore granted consequential relief. Case-Laws Central Excise Thu, 28 Apr 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=209794