2008 (9) TMI 715

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....iri, Advocate, for the Appellant. Shri V.V. Hariharan, JCDR, for the Respondent. [Order per : P.G. Chacko, Member (J)]. - After examining the records and hearing both sides, we note that the appellants have been directed to pay 8%/10% of the sale proceeds of waste and scrap like metal scrap, plastic scrap etc., which arose in the course of manufacture of power-driven pumps during the peri....

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....ap was cleared without payment of duty. In this scenario, according to the Revenue, Rule 6(3)(b) of the Cenvat Credit Rules, 2004 came to be applicable. Hence the impugned demand. 2. After hearing both sides and considering their submissions, we find that the demand is, by and large, on the strength of certain observations contained in the conclusive part of the order passed by a larger Be....

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....iff. He has made an endeavour to show that the observations made by the Tribunal's larger Bench in Rallies India case were only in the nature of obiter dicta. According to the learned counsel, even without these dicta, the order passed by the larger Bench was complete on the referred issue. The learned SDR has, on the other hand pointed out that the appellants did not reverse the Cenvat credit tak....

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....el would work in support of the appellant's case that the waste and scrap which emerged during the course of manufacture of PD Pumps during the period of dispute were not to be reckoned as excisable final products. If that be so, the appellants had only one final product viz. the PD Pump. For the applicability of Rule 6(3) of the Cenvat Credit Rules, 2004, there should be at least two final produc....