TaxTMI 
TaxTMI 
2015 (10) TMI 1699
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....involved in this appeal is whether 5% amount under Rule 6 of the Cenvat Credit Rules, 2004 is required to be paid by the appellant on Bagasse cleared by the appellant at Nil rate of duty when CENVAT credit is taken on the inputs. 2. Shri J.C. Patel, (Advocate) appearing on behalf of the appellant relied upon the following case laws to argue that no amount is required to be paid even after the amendment of Section 2(d) of the Central Excise Act, 1944 with effect from 15.05.2008:- (a) Commissioner of Central Excise, Ahmedabad-III vs. Nirma Limited [2012 (281) ELT 654 (Guj.)] (b) Indian Potash Limited vs. CCE, Allahabad [2012 (281) ELT 622 (Tri. Del.)] Learned Advocate argued that as per Para 6 of the case law Indian Potash Limited vs. CCE....
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.... 3. Counsel for the Revenue was confronted with the decision of this Court in Tax Appeal No. 1736 of 2009 wherein though the products under consideration were different, legal issue was similar. We find that a Division Bench of this Court in the case of Sterling Gelatin (Tax Appeal No. 1736 of 2009 decided on 09-9-2010) - 2011 (270) E.L.T. 200 (Guj.) was considering a product, i.e. mother liquor as a by-product in manufacture of gelatin. Referring to rule 6 of the Cenvat Rules, the Division Bench opined as under : "8. Thus, on a plain reading sub-rule (1) of rule 6, it is apparent that CENVAT credit is admissible in respect of the inputs used in the manufacture of dutiable goods and is inadmissible on such quantity of inputs which is used....
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.... the entire Hydrochloric Acid is used in the manufacture of Gelatin. Thus, when no input is specifically used for the purpose of manufacturing Di-Calcium Phosphate, there would be no question of maintaining separate accounts for receipt, consumption and inventory of input. xxx 13. Insofar as reliance placed upon the decision of the Bombay High Court in the case of Commissioner of Central Excise, Thane-1 v. Nicholas Piramal (India) Ltd. (supra) is concerned, the same would have no applicability to the facts of the present case inasmuch as in the facts of the said case, common input had been consciously used in the manufacture of two final products, whereas in the facts of the present case, the input Hydrochloric Acid is used for the manufa....