TaxTMI 
TaxTMI 
2014 (12) TMI 365
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....ribunal in the appellant's own case. Hence after disposing the stay applications, we take up the appeals for hearing and disposal. 3. After hearing both sides and on perusal of the records, we find that the issue involved in this case is as to whether the appellants are liable to pay the amounts on the clearance of Sludge cleared during the period from April 2011 to January 2012 and August 2010 to March 2011 under Rule 6 and 14 of CENVAT Credit Rules, 2004 read with Section 11A of the Central Excise Act, 1944 inasmuch as the appellants have availed cenvat credit on the common inputs used in the manufacture and clearance of the dutiable products of "Paper and Paper Boards as well as the exempted product of "Sludge". It is seen that "Slu....
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....e. However, against the entries in both these headings, the duty amount specified is 'Nil'. The Explanation to Section 2(d) is a deeming clause which renders any goods which are capable of being bought and sold for a consideration to be marketable. The cited decision of the Hon'ble Allahabad High Court in the case of Hindalco Industries Ltd. Vs Union of India reported in 2009 (243) E.L.T.481 (All.) is also to this effect. The deeming fiction became necessary to be created in the light of various judgments that merely because some goods are sold they cannot be held to be marketable and consequently they cannot be considered to be excisable as to 'excisability implied manufacture and marketablility'. However, the mai....
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....9; rate of duty. As per this definition, the impugned goods, namely, 'press mud' and 'sludge' would be covered under the definition of "exempted goods", though the same cannot be treated as "excisable goods" for the reasons stated in paragraph 5 above. The question raised in this case is whether in terms of Rule 6(3)(i), an amount equal to 10%/5% would be payable on such goods. While considering this question, I take note of the fact that these goods are definitely in the nature of by-product and waste. In the cited decision in Rallies India Ltd. Vs Union of India reported in 2009 (233) E.L.T.301 (Bom), the Hon'ble Bombay High Court reversing the earlier decision of the Larger Bench of the Tribunal, has held that w....