TaxTMI 
TaxTMI 
2010 (1) TMI 1065
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.... generated. Both these products are cleared without payment of duty. Department has taken a stand that since the process of screening of Iron Ore and Coke resulting in Iron Ore Fines and Coke Breeze amounts to manufacture and the resultant product namely Iron Ore Fines and Coke Breeze are cleared without payment of duty, it results in situation whereby the appellants are clearing both exempted and dutiable products. Since the appellants do not maintain separate accounts in respect of inputs used in the manufacture" of final products and exempted goods, the appellants are required to pay 10% of value of Iron Ore Fines and Coke Breeze as per provisions of Rule 6(3)(b) of CCR 2004. 2. After issue of show cause notice and adjudication proces....
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....uring the manufacturing process and the same is cleared without payment of duty and duty cannot be demanded under provisions of Rule 57CC of erstwhile Central Excise Rules, 1944. 6. Further he also submits that the decision of the Tribunal in the case of Narmada Gelatines Ltd. v. CCE, Bhopal - 2009 (233) E.L.T. 332 (Tri.-Del.) wherein the Tribunal has followed the ratio laid down by the Hon'ble Bombay High Court and in this case a portion of period related to the period when the Rule 57CC no longer was available and the demand had been made under the provisions of new Rule 6 of Cenvat Credit Rules, 2002 which has been carried in Cenvat Credit Rules, 2004 also. Further he also relies upon the Central Excise Manual issued by CBEC. He submi....
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....n this case. He also relies upon the decision in the case of CCE, Bangalore-III v. McDowell & Co. Ltd. - 2005 (186) E.L.T. 145 (Kar.) in support of his contention that the Tribunal has to consider all the issues in detail and justify grant of stay by passing reasoned order to show undue hardship. He submits that in this case no undue hardship has been established. Further, on merit also he submits that the appellant has no case. For this purpose he relied upon the order of the Commissioner where he has stated that the CBEC Circular F.No. 528/50/2003-Cus. (TU), dated 27th June, 2003, according to which conversion of Metallurgical Coke into Coke Breeze amounts to manufacture. Further he also submits that the process undertaken by the appellan....
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.... to all these observations and various aspects of law and prima facie case etc., Hon'ble Supreme Court had also made very important observations which we cannot ignore under any circumstances. We consider it appropriate to re-produce this observation before we proceed further. The observations found in the decision of the Hon'ble Supreme Court in Benara Valves Ltd. case are that "Merely because this Court has indicated the principles that does not give a licence to the forum/authority to pass an order which cannot be sustained on the touchstone of fairness, legality and public interest. Where denial of interim relief may lead to public mischief, grave irreparable private injury or shake a citizens' faith in the impartiality of public admini....
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.... The decision of the Tribunal in the case of Narmada Gelatines Ltd. follows the decision of the Hon'ble Bombay High Court whereby it has been held that by-product or waste arising during the course of manufacture are cleared without payment of duty, provisions of erstwhile Central Excise Rules, 1944 corresponding Rule 6(3)(b) of Cenvat Credit Rules, 2002 are not attracted. However, we find that none of the decisions was cited before the learned Commissioner nor were considered by him while passing the order. Further guidelines issued by the Board in CBEC Manual 3.7 have also not been considered by the Commissioner. Therefore, we would like the learned Commissioner to consider all these different decisions cited before us and the instruction....