2015 (10) TMI 338

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.... emerged as by-product, which is used for generation of electricity. The electricity was partly used in the plant and partly sold. 2. According to the Revenue, electricity is exempted and therefore they are liable to pay the amount 8% / 10% on value of the electricity under Rule 6 of the Cenvat Credit Rules. The Learned Advocate for the appellant, relied upon the following decisions: 1. Hitech Carbon Vs CCE, Allahabad - 2003(161)ELY 407 (Tri.Del) 2. Rallis India Ltd Vs UOI - 2009(233)ELT 301 (Bom) 3. CCE, Vadodara 1 Vs Sterling Gelatin 0-2011(270) ELT.200(Guj) 4. UOI & Others Vs Hindustan Zinc Ltd - Civil Appeal No 8621 of 2010 (SC) 5. Ballarpur Industries Ltd Vs CCE Nagpur =-2006(205)ELT 483(Tri.Mum) 3. The learned Authorised Repres....

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....n to the manufacture of the final product, whether or not such waste, refuse or by-product is exempted from whole of the duty of excise leviable thereon or chargeable to nil rate of duty or is not specified as a final product under Rule 57A". It is thus apparent from the provisions of Rule 57D(1) that the credit shall not be denied on the ground that part of the inputs is contained in a by-product. It is also not in dispute that by-product in the present matter namely, 'off gases' are burnt out which generate heat which in turn is used in the boiler to generate steam. No doubt the steam has been generated by the appellants as a conscious act but it cannot be claimed by the Revenue that any part of the inputs, that is CBFS or any other input....