2008 (7) TMI 999

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.... Murthy This appeal has been filed by Revenue against the order of Commissioner (Appeals) wherein he has set aside the order confirming the demand for 10% of the value under Rule 6(3) of cenvat credit rules, on the ground that the spent sulphuric acid was being cleared without payment of duty. The spent sulphuric acid was cleared under Notification No.04/2006-CE dt.1.3.06 as per Central Excise (R....

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....behalf of the Revenue submits that the Larger Bench decision of the Tribunal in case of Rallies India Ltd. vs. CCE, Salem, 2007 (78) RLT 117 (CESTAT-LB)=2007 (208) ELT 25 (Tri-LB), wherein it was held that byproduct has to be treated as a result of intended manufacture and not as an unwanted product. Therefore, the distinction cannot be made between the intended final product and unintended byprod....

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....of their byproduct viz. spent sulphuric acid cleared under Notification No.4/2006-CE for specific end use are required to maintain separate accounts and because of the failure whether they should pay 10% of the value as required under Rule 6(3). The second judgment cited by the learned SDR is not also relevant. I find that Commissioner (Appeals) has relied on the judgment of the Tribunal in the ca....