https://www.taxtmi.com/caselaws?id=54072 Rule 57CC/R6 applies where credit-availing inputs are used to manufacture both dutiable and exempted products without separate accounts. Zinc concentrate used in producing duty-free sulphuric acid remains the relevant input, irrespective of the value attributed to its zinc content. Sulphuric acid produced through a deliberate commercial process is treated as a subsidiary product rather than a by-product, so Rule 57D does not displace the payment mechanism. Later recovery machinery under the Cenvat Credit Rules does not extinguish the underlying liability for exempt clearances. Duty demands therefore survive, while penalty is not sustained. en-us Tue, 19 Apr 2005 00:00:00 +0530 Wed, 08 May 2024 13:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=54072 Rule 57CC/R6 applies where credit-availing inputs are used to manufacture both dutiable and exempted products without separate accounts. Zinc concentrate used in producing duty-free sulphuric acid remains the relevant input, irrespective of the value attributed to its zinc content. Sulphuric acid produced through a deliberate commercial process is treated as a subsidiary product rather than a by-product, so Rule 57D does not displace the payment mechanism. Later recovery machinery under the Cenvat Credit Rules does not extinguish the underlying liability for exempt clearances. Duty demands therefore survive, while penalty is not sustained. Case-Laws Central Excise Tue, 19 Apr 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=54072