2005 (12) TMI 415

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....i Reddy, JDR, for the Appellant. Shri G. Shiva Dass, Advocate, for the Respondent. [Order per : T.K. Jayaraman, Member (T)]. -  This is Revenue's appeal filed against Adjudication Order No. 87/2002-RP dated 31-12-2002 passed by the Commissioner of Central Excise, Visakhapatnam-II Commissionerate. 2. Revenue has filed the appeal on the following grounds :- "The Commissioner....

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....,86,767/-. The Commissioner in his order has held that, he did not propose any recovery for the period from May, 1995 to July, 1996 since the assessee has reversed the entire credit of Rs. 3,86,767/- that was taken by them on HCL & CSL and therefore, he has ordered that, no further action will be called for on this point. It is pertinent to mention that the assessee has debited/reversed the duty t....

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....:- (i)      Hydrochloric Acid (HCL) (ii)    Caustic Soda Lye (CSL) (iii)   Malted Barley (MB) During the process of manufacture, Ghee is produced as a by-product. In the conversion of MB to starch and sugar, Wort and Husk are separated. The Husk is cleared as cattle feed without payment of duty. Since common inputs mentioned above have ....

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....has imposed a penalty of Rs. 5,00,000/- under Rule 173Q and he has not proposed any recovery for the period from 5/1995 to 7/1997 inasmuch as the assessee has already reversed the entire credit of Rs. 3,86,767/-. We find that Husk is a waste product and cleared as cattle feed. Therefore, in terms of Rule 57D, no modvat credit can be denied on inputs on the ground that waste emerges. Therefore, the....