2015 (12) TMI 1445

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....ication order demanding duty on the amount of 10% of the value of exempted goods cleared by the respondents. 2. The facts of the case are that the respondent are engaged in activity of manufacturing of sponge iron. To manufacture sponge iron, the appellant procured iron ore fine. After processing the goods, sponge iron is manufactured and some iron ore fine or smaller pieces of iron ore emerge which are not usable for further manufacture of sponge iron. Therefore, same were cleared without payment of duty. As respondents are not manufacturing separate account for dutiable final product as well as exempted goods arising during the course of manufacture of final goods, the provisions of Rule 6(3) of Cenvat Credit Rules, 2004 are attracted ....

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....Rule 6(3) are not attracted in the facts of the case as the respondents are not manufacturer of iron ore fine. They are manufacturer of sponge iron and these are by-product which emerges during the process of manufacturing of their final product. Therefore, the respondents are not liable to pay any amount to the Revenue in the light of the decision of Maa Mangla Ispat Pvt.Ltd. [2013 (293) ELT 380 (Tri-Delhi)]. 5. Heard the parties and considered the submissions. 6. The identical issue in question has been dealt with by the Tribunal in the case of Maa Mangla Ispat Pvt.Ltd. (supra) wherein this Tribunal has observed as under:  "5. I have considered the submission made from both sides and perused the record. In this case, t....