TaxTMI 
TaxTMI 
2015 (4) TMI 810
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....ct of the case is that the appellant is 100% EOU engaged in the manufacture of Water Treatment Chemical. During the manufacture by product namely Hydrochloric Acid also generates, which is cleared by the appellant in the domestic market on payment of excise duty availing concessional Notification No. 23/2003-CE dated 31/3/2003. A show cause notice was issued by the Asst. Commissioner, Central Excise, Mahad Division, Raigad, wherein it was contended that since the appellant has cleared byproduct Hydrochloric Act without obtaining the permission for DTA sale of such byproduct, they are not entitled for concessional rate of duty under notification No. 23/2003-CE and was required to pay 100% of the applicable duty. In the adjudication vide orde....
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....as issued in respect of byproduct i.e. Hydrochloric Acid. It is his submission that on the basis of the said LOP the appellant was entitled to clear the byproduct in the domestic market and for which no specific permission was required. 3. On the other hand, Shri. N.N. Prabhudesai, Ld. Superintendent (A.R.) appearing for the Revenue reiterates the findings of the impugned order. He further added that the appellant, for the clearance of the said byproduct i.e. Hydrochloric Acid, during the period of Sept 2006-March 2009 had obtained the permission and on that basis only the adjudicating authority vide order dated 21/12/2009, dropped the penalty whereas in the present case the appellant has not obtained similar permission for DTA sale of byp....
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....he Board of Approval From the above circular, it is clear that for the purpose of DTA sale of by-product, specific permission is not required. If LOP in respect of by-products is obtained, it is sufficient requirement for sale of by-product in DTA as envisaged in Para IV. Sale of by-products is permitted under clarification issued on 19/8/1992. On going through the LOP, we observed that the LOP was issued in respect of by-product namely Hydrochloric Acid. Therefore, in terms of clarification, it provides that the sale of such by-product in the DTA may be made if such sale is permitted in the letter of permission (LOP)/letter of intent (LOI). Accordingly, a separate and specific permission is not warranted. In view of the above position, we....