TaxTMI 
TaxTMI 
2006 (9) TMI 51
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....CE dated 19-12-2005 passed by the Commissioner of Customs and Central Excise (Appeals), Guntur. 2.The appellants availed Cenvat credit used in the manufacture of chlorine. In the process, dilute sulphuric acid emerges as byproduct. This byproduct was cleared by the appellants to their sister unit at Kovvur at nil rate of duty for use in the manufacture of fertilizer under chapter X procedure agai....
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....er excisable goods nor final product. (ii) The Apex Court in UOI v. Ahmedabad Electricity Co. Ltd. - 2003 (158) E.L.T. 3 (S.C.), has held that merely because some item emerges during a manufacturing process and finds a place in the CET and sold for a price that would not be sufficient to term an item as excisable goods. The spent sulphuric acid cannot be called as excisable good....
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....a byproduct and the 8% reversal rule would not apply to the same as it was only a residue or waste chargeable to nil rate of duty. (d) Aarti Drugs Ltd. v CCE - 2001 (133) E.L.T. 385 wherein the Tribunal held that mother liquor, which was a solution of ammonium sulphate in water was a byproduct and the 8% reversal rule would not apply. (iv) The spent sulphuric ....
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....n the following cases, it has been held that when goods are shifted to another unit of the assessee for captive consumption no sale of goods is involved and hence, Modvat credit is not required to be reversed under Rule 57CC of erstwhile Central Excise Rules, 1944. Rule 6 of Cenvat Credit Rules is, pari materia with Rule 57CC of erstwhile Central Excise Rules, 1944. Sl. No. Particulars Synopsis....