TaxTMI 
TaxTMI 
2010 (2) TMI 396
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.... passed by the Commissioner (Appeals) which set aside the order of the original authority which was in favour of the party. 2. All these appeals involve common facts and law and accordingly, they are being dealt with by a common order. 3. Heard both sides. 4.1 The manufacturing process as submitted by Shri O.P. Agarwal, learned Chartered Accountant for the appellants , in brief, are as follows : The appellants use SS flats as primary raw materials for manufacture of cold rolled patta/patti falling under sub-heading 7219.90. The process SS flats are cut into pieces of required sizes; they are subject to process of annealing by putting them in oil fired furnace which results in softening the material for the purpose of rolling; th....
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....counts in respect of SS flats which go into manufacture of exempted SS scrap and therefore, they are required to pay the amounts in terms of Rule 6(3)(b) of Cenvat Credit Rules, 2004. Accordingly, he confirmed the duty and interest and imposed penalties. The orders of the original authority stand upheld by the Commissioner (Appeals). 4.3 In Appeal No. E/2348/2007, the original authority dropped the proceedings. On appeal by the Department, the Commissioner (Appeals) held that Rule 6(3)(b) of Cenvat Credit Rules is applicable and confirmed the duty demand along with interest and imposed penalty. 5.1 Learned Chartered Accountant for the appellants after narrating the process of manufacture submits that they were not intending to manufac....
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....sioner (Appeals). He further submits that the decision relied upon by the learned Chartered Accountant relates to waste and does not specifically deal with the scrap. 7. I have carefully considered the submissions from both sides and perused records. Undisputedly, the entire inputs namely, SS flats stand utilised for the intended purpose namely, manufacture of SS cold rolled patta/patti. It is not the case that some portions of SS flats were exclusively used for the manufacture of cold rolled patta/patti and some other portions are exclusively used for manufacture of SS scrap. In other words, in the present case, it cannot be said that the inputs have not been used for manufacture of dutiable final products namely, SS cold rolled patta/p....
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.... was :- 'Whether 8% of the amount as per erstwhile Rule 57CC of Central Excise Rules, 1944 (now Rule 6 of Cenvat Credit Rules, 2002) is required to be discharged, before removal of by-products/subsidiary products when such products are exempted from whole of duty therein in light of the conflicting view in the above decisions.' The Larger Bench of the Tribunal concurred with the views expressed by the Tribunal in the case of Binani Zinc Ltd. (supra) and by the impugned decision held that the petitioner who manufactured both dutiable and exempted final products by utilizing duty paid common inputs (Modvat credit of which was taken) was liable to pay an amount equal to 8% of the value of the exempted final product under Rule 57CC of Cen....